You would like to have enough money saved to receive a $65,340 per year after retirement in perpetuity. How much would you need to have saved in your retirement fund to achieve this goal? Assume that the perpetuity payments start on the day of your retirement. The annual interest rate is 9%. 

To calculate the amount needed in a retirement fund to receive a fixed payment in perpetuity, you can use the perpetuity formula:

\[
PV = \frac{A}{r}
\]

Where:
- $PV$ is the present value (the amount you need to save).
- $A$ is the annual payment (the amount you want to receive each year).
- $r$ is the annual interest rate (expressed as a decimal).

Given:
- $A = 65,340$
- $r = 9\% = 0.09$

Substituting these values into the formula:

\[
PV = \frac{65,340}{0.09}
\]

Let's calculate this.You would need to have **$726,000** saved in your retirement fund to receive $65,340 per year in perpetuity, assuming an annual interest rate of 9%.

Do you want more details or have any questions? Here are some related questions that might interest you:

1. How would the required savings change if the interest rate was different?
2. What is the concept of perpetuity and how is it used in finance?
3. How can inflation affect the purchasing power of your perpetuity payments?
4. What happens if you want the payments to increase annually with inflation?
5. How do you calculate the required amount if the payments are not perpetual but last for a fixed number of years?

**Tip:** Perpetuities assume that payments continue indefinitely. It's a useful concept for retirement planning, but always consider factors like inflation and varying interest rates over time.

Discover how much you need to save in your retirement fund to receive $65,340 per year indefinitely. Use our perpetuity formula calculator with an annual interest rate of 9%.

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