How much money does suzie need to have in her retirement savings account today if she wishes to withdraw $42,000 a year for 25 years? she expects to earn an average rate of return of 9.75 percent?

The money Suzie needed is $388,683.83.

To calculate this we use the following formula;

= 42,000 * ((1 - (1 / (1 +.0975) ²⁵)) /.0975

=42000 x (1 - (1/10.2355980492) / 0.0975

=42000 x (1 - 0.0976982483) / 0.0975

=42000 x (0.9023017517) / 0.0975

=37896.6735714 / 0.0975

= $388,683.83150153

= $388,683.83