Question

If Cole wants to retire with $1,000 per month, how much principal is necessary to generate this amount of monthly interest income if the interest rate is 8%?

Answer 1

Cole has to have 12,500 to generate 1,000

Answer 2

I think it would be 12,500 too because you have 12 months and 1,000 for every month and you have the 8% interest rate so 12,500