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timama [110]
3 years ago
7

A retiree wants level consumption in real terms over a 30-year retirement. If the inflation rate equals the interest rate she ea

rns on her $459,000 of savings, how much can she spend in real terms each year over the rest of her life?
Mathematics
2 answers:
Karo-lina-s [1.5K]3 years ago
8 0

Answer:

Real rate = Interest rate - Inflation rate

Here, real rate will be ZERO.

When real rate of return os ZERO annual saving will be Value/Years.

Hence, available real annual savings is $15,300 ($459,000/30)

Step-by-step explanation:

____ [38]3 years ago
5 0

Given Information:

Time period = n = 30 Years

Amount = P = $459,000  

Inflation rate = interest rate

Required Information:

Spending per year = ?

Answer:

She can spend $15,300 per year

Step-by-step explanation:

Lets assume that interest rate is x

Real rate = Interest rate - inflation rate

since it is given that Inflation rate = interest rate

Real rate = x - x

Real rate = 0

Therefore, the retiree can spend

$459,000/30 = $15,300 per year

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Answer:

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Step-by-step explanation:

A fraction exponent converts into a radical. The denominator is the index of the radical (farthest left number) and the numerator is the exponent of the base inside (the farthest right number). The base of the fraction exponent is the base number in green. To write this expression, simply the exponents into one exponent and one base.

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Step-by-step explanation:

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