Question

In planning for your retirement, you would like to withdraw $45,000 per year for 16 years. The first withdrawal will occur 20 years from today.

What amount must you invest today if your return is 10% per year?

What amount must you invest today if your return is 15% per year?

Answer 1

1)

What amount must you invest today if your return is 10% per year

=(45000*((1-(1+10%)^(-16))/10%))/(1+10%)^19

=57565.75

2)

What amount must you invest today if your return is 15% per year

=(45000*((1-(1+15%)^(-16))/15%))/(1+15%)^19

=18826.93

THE above will be answer..