2006-12-08 07:54:36 · 17 answers · asked by lucy p 2 in Business & Finance ➔ Personal Finance
about $100,000 if annual interest rate is 6%
2006-12-08 07:56:15 · answer #1 · answered by epbr123 5 · 0⤊ 0⤋
The obvious answer is it depends on the going rate. Typical rates in my area run just about 5%. (typical rates on 12-15 month bank certificates FDIC insured).
To earn $500. the would require the amount to yield $6000 per year. and if PRT= I (Principal X Rate X Time equals Interest
we find Principal X 1 year X 5%=$6000
Thus, $6000/.5= $120,000
Proof $120,000 X .005 = $6000/12=$500
2006-12-08 08:06:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Easy to compute IF you know interest rate. Formula is:
P = Amount of Money Needed (Also called Principal)
i = interest rate. (generally this is going to be your investment rate of interest, e.g. 3% or 4% per year).
i/12 = per monthly rate.
P = $500 * 12 / i
Thus at 4% invested interest rate you would need $150,000.
Another concept would be an ANNUITY from an insurance company where they would pay you $500 per month for the rest of your life IF you gave them approx. $140,000. At the end of that time they would keep any remainder OR in some cases pay your family back the balance if they had underpaid (some clauses).
2006-12-08 08:07:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Depends on the rate of return
but if you had 100,000 @ 6% you would get 6,000 annually
6000/12=500
2006-12-08 07:56:56 · answer #4 · answered by SALMON 5 · 0⤊ 0⤋
depends on the interest rate of ur bank and ur account type...
call the hotline and ask what the rates are... add details and i will work it out 4 u.
2006-12-08 07:56:28 · answer #5 · answered by ◄☯♫ vanitee of vanitees ♫☯► 6 · 0⤊ 0⤋
I think ING direct has a fairly good savings account interest rate.
2006-12-08 07:56:31 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Depends on your intersted rate... you would prob be better off with a bond that would give you a better rate.
So we'll say 2% which is really high.... then $25,000
2006-12-08 07:57:18 · answer #7 · answered by Anonymous · 0⤊ 0⤋
That depends on your interest rate.
2006-12-08 07:57:15 · answer #8 · answered by pachangero69 2 · 0⤊ 0⤋
Around or maybe a little over 100 thousand.
2006-12-08 07:56:30 · answer #9 · answered by Kismitt 6 · 0⤊ 0⤋
Annual interest is total is $6,000.00. Divide that amount by the interest rate. 6000/.05 = 120,000
6000/.06 = 100,000.
2006-12-08 07:59:56 · answer #10 · answered by regerugged 7 · 0⤊ 0⤋