Active discussions

Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Talk
Other subjects
Original poster

Any mathemeticians out there?

42 replies

moonstone1201 · 23/08/2007 21:27

Ok this is a bit of a weird one, but I'm hoping to have it solved by the time I get to work tomorrow.

If someone has £x and invests this at a rate of 5% per year, taking an income starting at £9607, which increases by 5% per year for 15 years, how much does x need to be to run the fund down to zero within this time?

I've looked all over the web for a calculator to work this out but I'm not even sure what I'm searching for. Pension calculators seem to be the closest thing, but none of them seem to allow for the increasing income.

Any help appreciated!

OP posts:
SlightlyMadStar · 23/08/2007 22:15

Arrrr - I agree with Kathys DH now. I thought the statement "you get £137242.86(ish) " referred to teh total income that would be drawn over 15yrs. I didn't think he had calculated back to the initial investment (which I calculate to be £144,100 taking income at start of year and adding interest immediately after taking income).

So we are all inthe same ball park - £135-145K investment?

ChasingSquirrels · 23/08/2007 22:16

is that because you are too small to look over his shoulder

ChasingSquirrels · 23/08/2007 22:20

so we can go to bed happy now while moonstone laughs at us for getting het up about it

Kathyis6incheshigh · 23/08/2007 22:21

You know I find it very sexy when he gets difficult sums right. That's why I made him do it.

ChasingSquirrels · 23/08/2007 22:21

definately off to bed then!

SlightlyMadStar · 23/08/2007 22:22

So you heading off to bed then Kathy?

Kathyis6incheshigh · 23/08/2007 22:23

Maybe Moonstone is a new kind of troll - she posts mathematical problems and sits there and laughs at everyone getting worked up

SlightlyMadStar · 23/08/2007 22:25

LOL....or maybe he/she finds it sexy to see people doing complicated maths stuff !!!

Kathyis6incheshigh · 23/08/2007 22:29

OMG apparently if you want to take the income at the beginning of the year instead of the end you just take 15 x the income, independent of the interest rate.
He now says he is wrong about dividing by the AER.

He is starting to get interested now so I don't think we are going to get to bed for ages. Ah, the cruel irony of our relationship

Kathyis6incheshigh · 23/08/2007 22:29

LOL SMS. maybe there are a lot of us out there.

SlightlyMadStar · 23/08/2007 22:32

Its you isn't it?

You started this thread under a psuedonym to see us all being sexy?

You started this thread so you could ask your DH to help so you could see him being sexy?

Go on admit it, this is porn to you !!!

ChasingSquirrels · 23/08/2007 22:32

that makes more sense than the AER, which did sound crap to me.
and LOL at the troll thing, now I MUST go and sort out some packing.

Hurlyburly · 23/08/2007 22:38

So erm, why don't the two 5%s cancel one another out, leaving the answer as 15 x £9,607?

Humble arts graduate - you will need to explain it very carefully - you can use words of more than one syllable - it's just the numbers that scare me.

Kathyis6incheshigh · 23/08/2007 22:38

LMAO!

Kathyis6incheshigh · 23/08/2007 22:42

Hurlyburly the hilarious thing is that if you take the money at the beginning of the year, they do.
Sledgehammer to crack a nut, eh?

DH thinks you must be a very bright arts graduate.

SlightlyMadStar · 23/08/2007 22:43

Because you will take the 9607 out on the first year and be left with £50 (the interest) to pay next years income and nothing for the third year

SlightlyMadStar · 23/08/2007 22:44

Ignore me - I thought HurlyBurly wanted to invest £9607

New posts on this thread. Refresh page