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K asked in Science & MathematicsMathematics · 7 years ago

How do you explain safe yield with an example?

If you have $1000,000, your bank pays you 5% per annum which is $50,000. You spend $55,000 a year, how long will the capital last? Can anyone give me the answer as well as the formula / equation to come to the solution? I need this to teach safe yield (related to environment) to some clients.

Other examples of safe yield would be highly appreciated.

Thanks

1 Answer

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  • 7 years ago
    Favorite Answer

    Scary... for the clients....

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