You are planning to save $1,000,000 for retirement over the next 30 years. if you are earning interest at the rate of 6% and you spend all the money in 20 years after retirement, what annual level of living expenses will those savings support?

The retirement fund will provide 87,148.56 dollars per year during 20 years

Explanation:

The plan is to achieve 1,000,000 in 30 years.

Then we will spend them equally during a period of 20 years

We want to knwo how much will the retirement account provide.

So, we need to calculate the cuota of an annuity of 20 years with a presenet vale of 1,000,000 dollars at 6% discount rate:

PV  $1,000,000.00

time20 years

rate6% = 6/100 = 0.06

C  $ 87,184.56

The retirement fund will provide 87,148.56 dollars per year during 20 years

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed