Need help on finance problem?

-Ok, i have a HW assignment that is asking me the following:



d) How much money would you need to have accumulated to provide the amount you found in part (c) if you decide to live on the interest only? Be careful here. You can assume monthly compounding, so you just need to know how much money would generate the amount you found in part (c) each month. You will need to do a bit of research here to find an appropriate interest for a savings account, and be sure to adjust accordingly if it is an annual rate instead of a monthly rate.



The information below is what i have done so far. It has different parts but i need help on the above question which is part D.



For part A i have 3.6% inflation rate

For part B i have $1,700 for a comfortable monthly living

For part C i used the formula A=PeRT and got $8,905.11

For part D i found an interest rate of 1.04% do i use the formula I=Prt? How would i solve the problem?You've not given full numbers, so we have to guess (that's not good).



If you have



Principal = 100,000

Interest rate per yr = 3.60%

Compounded times per yr = 12

Time in years = 1



At the end of 1 year you'll have

Amount = 103,660.00



which represents only 3,660 of "income" per year ($305 / month)



It's not a good idea to rely only on interests (unless you're very, very rich)



See these calculators online, they can help you try different approaches

http://matrixlab-examples.com/savings-in鈥?/a>

http://matrixlab-examples.com/calculate-鈥?/a>



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