How much money must you save in order to earn

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Reference no: EM132019561

Suppose you have started planning your retirement, and you want to live in retirement only on your investment earnings.

During retirement, you want to earn $40,000 per year. You can save $20,000 for the next 10 years until you retire. While saving, you expect your portfolio to earn 8% per year, compounded annually.

How much money must you save in order to earn $40,000 during retirement?

Explain why you will or wont be able to acheve the goal. Nonnumber of years from retirement till death is available.

Reference no: EM132019561

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