In: Finance
John is saving for retirement by contributing $20,000 a year to his 401(k) assuming that John is currently 40 and is looking to retire at the age of 60 (Assume 7% returns). John wants to live of his investment earnings going forward Compute how much income he can expect a month with the investment income of 5% Annually.
Currently John is 40 and contributes 20,000 a year till the age of 60. Total retirement amount schedule is as below:
Home / Financial Calculators / Future Value Calculator
Future Value Calculator
The future value calculator can be used to calculate the future value (FV) of an investment with given inputs of compounding periods (N), interest/yield rate (I/Y), starting amount, and periodic deposit/annuity payment per period (PMT).
|
Results Future Value: $877,303.54
|
Balance Accumulation Graph
PrincipalInterestBalance05101520$0$250.0K$500.0K$750.0K$1.0M
Breakdown
46%54%Periodic DepositsInterest
Schedule
start principal | start balance | interest | end balance | |
1 | $20,000.00 | $20,000.00 | $1,400.00 | $21,400.00 |
2 | $40,000.00 | $41,400.00 | $2,898.00 | $44,298.00 |
3 | $60,000.00 | $64,298.00 | $4,500.86 | $68,798.86 |
4 | $80,000.00 | $88,798.86 | $6,215.92 | $95,014.78 |
5 | $100,000.00 | $115,014.78 | $8,051.03 | $123,065.81 |
6 | $120,000.00 | $143,065.81 | $10,014.61 | $153,080.42 |
7 | $140,000.00 | $173,080.42 | $12,115.63 | $185,196.05 |
8 | $160,000.00 | $205,196.05 | $14,363.72 | $219,559.77 |
9 | $180,000.00 | $239,559.77 | $16,769.18 | $256,328.96 |
10 | $200,000.00 | $276,328.96 | $19,343.03 | $295,671.99 |
11 | $220,000.00 | $315,671.99 | $22,097.04 | $337,769.03 |
12 | $240,000.00 | $357,769.03 | $25,043.83 | $382,812.86 |
13 | $260,000.00 | $402,812.86 | $28,196.90 | $431,009.76 |
14 | $280,000.00 | $451,009.76 | $31,570.68 | $482,580.44 |
15 | $300,000.00 | $502,580.44 | $35,180.63 | $537,761.07 |
16 | $320,000.00 | $557,761.07 | $39,043.27 | $596,804.35 |
17 | $340,000.00 | $616,804.35 | $43,176.30 | $659,980.65 |
18 | $360,000.00 | $679,980.65 | $47,598.65 | $727,579.30 |
19 | $380,000.00 | $747,579.30 | $52,330.55 | $799,909.85 |
20 | $400,000.00 | $819,909.85 | $57,393.69 | $877,303.54 |
Total investment at the age of 60 is $877,303.54.
5% of investment income earned annually.Yearly investment income=$877,303.54*0.05=$43,865.18
Monthly income =($43,865.18)/12= $3655