Suppose you have $1,000,000 today and starting a year from now you intend to spend this money over the next 30 years. Assume the nominal rate of interest is 9.2%, inflation rate of 5% and the real rate of interest is 4%. How much can you spend annually in real dollar terms over the next 20 years to ensure constant spending in real terms?

Explanation:

Here Initial amount = $10,00,000

Nominal Interest Rate = 9.2%

inflation  Rate = 5%

Real Interest Rate = 4%

in question it was asked to give in real then we will use the real discount rate to know annual spent amount

Present Value = PMT×PVIFA ( at 4% and 20 years)

Therefore, PMT = Present Value of Cash / PVIFA ( at 4% and 20 years)

= 1000000 / 13.5903

= $73581.75

Where,  PMT = Annual Spent Amount

PVIFA = Present Value interest Factor Annuity

there is no possible way mgk stands a chance with the greatest white rapper of all time. eminem killshots had more bars than rap devil and the reason mgk is doing all this is cause he not getting attention anymore til the release of rap devil and the disses he is putting on eminem. now rap devil was more fire than killshot so mgk might won the battle with rap devil but eminem won the war with killshot.