Perpetuity payments start one year from date of retirement

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Reference no: EM131585279

You would like to have enough money saved to receive $100,000 per year in perpetuity after retirement so that you and your family can live a good life. How much would you need to have in your retirement fund on the day you retire to achieve this goal if the interest rate you can get from your perpetuity is 12.5%? Assume that the perpetuity payments start one year from the date of your retirement.

A) $1,000,000 B) $10,000,000 C) $800,000 D) $1, 250,000 E) None of the above

Reference no: EM131585279

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