Question: 2 . Luis has $ 2 million saved for retirement and wants to make sure he can spend $ 1 0 0 , 0 0

2 .

Luis has $

2

million saved for retirement and wants to make sure he can spend $

100, 000

each year for the next

40

years.

.

He has no children, so he has no need to leave any savings when he expires. What interest rate must he get on his investment to be certain of this goal?

.

He decides he wishes to leave $

200, 000

to charity when he dies. Now what interest rate must he achieve?

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