Income from an apartment building you own totals $220,000 per year. You plan on selling the building and retiring to France in 13 years. Assuming you can invest the income from the building each year at 2%, how much money will you have on which to retire? Future Value of $1
Future Value of Annuity of $1

Question

Income from an apartment building you own totals $220,000 per year. You plan on selling the building and retiring to France in 13 years. Assuming you can invest the income from the building each year at 2%, how much money will you have on which to retire? Future Value of $1
 Future Value of Annuity of $1

Quizplus · Accepted Answer

Using the formula for the future value of an annuity:
FV = A * ((1+r)^n - 1) / r
where:
A = annual income from the building = $220,000
r = interest rate = 2%
n = number of years until retirement = 13

FV = $220,000 * ((1+0.02)^13 - 1) / 0.02
FV = $3,229,600

Therefore, the amount of money you will have on which to retire is $3,229,600.

Income from an Apartment Building You Own Totals $220,000 Per