00:01
Hey there, welcome to numerate.
00:03
We are given a problem here where we're starting as a 25 year old, looking to deposit a certain amount each month in order to retire at age 60, where we have an income of 100k and an apr, fixed apr of 5%.
00:21
So therefore, we're going to be utilizing our future value equation, where we basically have the pmt, the monthly, deposit amount so pmt multiplied by um basically we have one plus r one part plus r raise to the um n minus one and then with that that's going to be divided by r so let's rearrange our terms over here to solve for our so this is going to be all flipped around, future value times r divided by what we have here.
01:37
All right.
01:38
So our future value here, what we want is the $100 ,000.
01:51
All right, to draw an income of $100 ,000 forever.
01:59
In which we have that multiplied by r.
02:06
So this is going to be multiplied by r in which we know r here is going to be taking account the rate, the apr, in which we have basically 0 .05, apr, divide by 12 to find the monthly.
02:28
So monthly here is 0 .00417, or we can just round to 0 .004144.
02:38
So we're going to multiply that and divide this by our equation of 1 plus 0 .004.
02:54
And then let me see here.
02:58
I think i've raised it to the wrong.
03:00
So i'll raise it to the r.
03:02
So i'll fix this.
03:07
So what we have here is supposedly raised to the n, close parentheses, right? so let me fix this one too...