document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=423416>Question 423416</A>: <I><SPAN STYLE=\"word-break: break-all;\"> I am 30 years old and want to retire at age 60. I want to be able to collect $60,000 a year for 20 years. At 5% interest, how much money do I need to invest today to be able to collect $60,000 for 20 years by the time I reach 60?\r<BR>\n" );
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document.write( "Thank you in advance for any help and/or consideration. This one is really stumping me because I do not even know what formula to use.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #295338 by </B><A HREF=/tutors/aboutme.mpl?userid=josmiceli><B>josmiceli(19441)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=josmiceli><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=josmiceli><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=295338\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> I'm not really sure how to read this, but I<BR>\n" );
document.write( "think what they mean is:<BR>\n" );
document.write( "  Out of the 30 years I have before retirement,<BR>\n" );
document.write( "I want to earn $60,000/yr for 20 of those<BR>\n" );
document.write( "years. So, for the first 10 years I would <BR>\n" );
document.write( "reinvest all the money and on the 11th year,<BR>\n" );
document.write( "I would draw out exactly $20,000, and keep<BR>\n" );
document.write( "drawing the same amount out for 20 years.<BR>\n" );
document.write( "To find the minimum I must start with, I've<BR>\n" );
document.write( "got to assume that ,on the 30th year, I will<BR>\n" );
document.write( "exhaust all my investment.<BR>\n" );
document.write( "  So, the 1st part of the equation is <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P ALIGN=MIDDLE  ALT=\"P\"   DISABLED_style= \"max-width:90%; height:auto;\" > dollars<BR>\n" );
document.write( "initial investment + reinvested principle and<BR>\n" );
document.write( "interest over 10 years.<BR>\n" );
document.write( "Let <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A ALIGN=MIDDLE  ALT=\"A\"   DISABLED_style= \"max-width:90%; height:auto;\" > = amount after 10 years<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+P%2A%281+%2B+10%2A.05%29+ ALIGN=MIDDLE  ALT=\"+A+=+P%2A%281+%2B+10%2A.05%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" > (simple interest formula)<BR>\n" );
document.write( "So, after 10 years I must have <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=20%2A60000+=+1200000 ALIGN=MIDDLE  ALT=\"20%2A60000+=+1200000\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+1200000+=+P%2A1.5+ ALIGN=MIDDLE  ALT=\"+1200000+=+P%2A1.5+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+P+=+1200000%2F1.5+ ALIGN=MIDDLE  ALT=\"+P+=+1200000%2F1.5+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+P+=+800000+ ALIGN=MIDDLE  ALT=\"+P+=+800000+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "I need to invest $800,000 today.<BR>\n" );
document.write( "I hope either or both the explanation and solution are helpful.  </SPAN>\n" );
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