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If I have $100,000 today. I have just retired. I will retire for 20 years. I will put away $10,000 of my current balance towards
If I have $100,000 today. I have just retired. I will retire for 20 years. I will put away $10,000 of my current balance towards a bequest for my kids. Interest rate is 8%. Inflation rate is 3%. Because I wont touch $10,000 from my total balance, I must now live off the $90,000 for the next 20 years. Calculate the actual amount of consumption, in nominal dollars, using the stated assumptions.
please show your work with a little explanation.
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