If you wanted to create your own annuity with $60,000 and you wanted to take $400 a month out for 20 years, how much would you need to earn on your investment?
(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)
(N=6,I=12.5%,PV= -103,000,PMT=0) FV=109,607.49
(N=6,P= -100,000,PMT=0,FV=109,607.49) I= 18.49%