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A jet-setting lawyer plans on living large on the French Rivera in retirement. The lawyer anticipates living for 20.00 more years after retirement and will need $294,800.00 per year to support her life
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A jet-setting lawyer plans on living large on the French Rivera in retirement. The lawyer anticipates living for 20.00 more years after retirement and will need $294,800.00 per year to support her life in the South of France. While retired, she will keep her money in a tax-free account that pays 2.00% per year. How much money will the lawyer need when she retires

User Ibramazin
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1 Answer

9 votes

Answer:

the amount that lawyer needed is $4,916,674

Step-by-step explanation:

The computation of the amount that lawyer needed is shown below:

= $294,800 × Present value of annuity factor(2%,20)

= $294,800 × 16.678

= $4,916,674

Hence, the amount that lawyer needed is $4,916,674

Simply we multiplied the above two items

User Julien Greard
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4.6k points
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