16. How much money will I need to have at retirement so I can withdraw $60,000 a year for 20 years from an account earning 8% compounded annually? a. How much do you need in your account at the beginning b. How much total money will you pull out of the account? c. How much of that money is interest?

Step-by-step explanation:

a) If we assume the annual withdrawals are at the beginning of the year, we can use the formula for an annuity due to compute the necessary savings.

The principal P that must be invested at rate r for n annual withdrawals of amount A is ...

  P = A(1+r)(1 -(1 +r)^-n)/r

  P = $60,000(1.08)(1 -1.08^-20)/0.08 = $636,215.95

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b) 20 withdrawals of $60,000 each total ...

  20×$60,000 = $1,200,000

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c) The excess over the amount deposited is interest:

  $1,200,000 -636,215.95 = $563,784.05

the function makes a strait line horizontally with no x intercept but a y intercept at 9.

answer

d. 10

explanation

the distance from point y to wx is the height of the triangle.

using pythagoras theorem,

group similar terms to get,

this implies that,

take positive square root of both sides to get,

this implies that,