You are 20 years old, and you believe you can retire once you build up an investment account that produces enough passive income to support your annual expenses. You think you will need approximately $80,000 per year for your expenses. If your investments have a return of 10% per year, what is the minimum account balance you need to retire? If your investment account had an initial balance of $10,000, how long will it take before you can retire (assuming you don’t have monthly or annual contributions)?

Answer rating: 100% (QA)

To calculate the minimum account balance required to retire we can use the present value formula PV ... View the full answer