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Richie Rich inherited a large sum of money from his uncle Rick Rich
Richie Rich inherited a large sum of money from his uncle Rick Rich. Richie's money manager, Ronnie Ronaldo, says that Richie can safely spend 4% of his inheritance per year to live off of, which equates to $250,000 a year, while Ronnie Ronaldo manages the rest (meaning that Richie Rich can spend $250k a year, and still maintain the dollar amount of money he inherited from his uncle). How much money did Richie inherit from Rick?
Please enter your answer rounded to the nearest dollar with no punctuation of formatting. For example, please enter the answer $3,000,000 as 3000000
Expert Solution
Given,
Spend= 250000
Inheritance %= 4%
So,
Amount inherited = Spend/ Inheritance %
= 250000/ 4%
= 6250000
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