Question
Becky Scholes has $1,500,000 to invest. She wants to be able to withdraw $100,000 every year forever without using up any of her principal. What
Becky Scholes has $1,500,000 to invest. She wants to be able to withdraw $100,000 every year forever without using up any of her principal. What interest rate would her investment have to earn in order for her to be able to do so?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
