# If you want to be able to withdraw $80,000 per year forever beginning 30 years from now, how much...

## Question:

If you want to be able to withdraw {eq}\$80,000 {/eq} per year forever beginning 30 years from now, how much will you have to have in your retirement account (that earns {eq}8\% {/eq} per year interest) in (a) year 29 and (b) year 0?

## Perpetuity:

A perpetuity is a fixed-income investment in that an investor receives a stream of annual payments indefinitely. With that being said, perpetuity can be left as an inheritance for the next generations.

## Answer and Explanation: 1

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View this answer**Summary: **

- Annual withdrawal = $80,000
- Annual interest rate (I) = 8%
- Number of years in the waiting period (N) = 30

The pattern of annual...

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Chapter 6 / Lesson 4Learn what perpetuity is in finance. Understand the meaning and definition of perpetuity, its characteristics and how its present value can be found using a formula.

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