SOLUTION: When you retire you will initially require an annual income of 125,000 per year. You anticipate living for 25 years during retirement with an 8% investment return. How much do you

Question 578097: When you retire you will initially require an annual income of 125,000 per year. You anticipate living for 25 years during retirement with an 8% investment return. How much do you need in your pension plans to cover this need?
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
This is my guess:
You have amount per year in the pension plan
You make per year investment return per year
---------
For each year,

For 25 years,

You need $2,893,518.50 in the pension plan.
That's my guess, you might want a 2nd opinion, too
RELATED QUESTIONS
You plan to work for 40 years and then retire using a 25-year annuity. You want to... (answered by ikleyn)

1. Wen Seng operates an ice cream shop. He is trying to decide whether to expand his... (answered by ikleyn)

You are currently 24 years old and you have just won the lottery! Your payout after taxes (answered by josmiceli)

You plan to work for 40 years and then retire using a 25-year annuity. You want to... (answered by Theo)

Hi I have been trying and trying to find out this answer on my own and I just can't... (answered by rothauserc,MathTherapy)

You want to be able to withdraw $20,000 from your account each year for 20 years after... (answered by ikleyn)

You want to be able to withdraw $20,000 from your account each year for 30 years after... (answered by Theo)

You want to be able to withdraw $40,000 from your account each year for 30 years after... (answered by Theo)

You want to be able to withdraw $45,000 from your account each year for 15 years after... (answered by Theo)