Created
November 10, 2019 17:58
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import math | |
import matplotlib.pyplot as plt | |
import numpy as np | |
import matplotlib | |
def breakeven(r,t,N): | |
r2=(1-t)*r | |
x=(1+r2)/(1+r) | |
return np.power(x,N)*t | |
N = np.arange(1,35,1) | |
y = breakeven(0.08,0.37,N) | |
y2 = breakeven(0.08,0.22,N) | |
matplotlib.rc('xtick', labelsize=20) | |
matplotlib.rc('ytick', labelsize=20) | |
font = {'family' : 'normal', | |
'weight' : 'bold', | |
'size' : 22} | |
matplotlib.rc('font', **font) | |
fig, ax = plt.subplots() | |
ax.plot(N,y,linewidth=3,label="$t_1=0.37$") | |
ax.plot(N,y2,linewidth=3,label="$t_1=0.22$") | |
ax.set_xlim(35, 0) # decreasing time | |
ax.set(xlabel="years to retire (N)", ylabel="lower bound on $t_2$ to make Roth more preferable") | |
ax.xaxis.label.set_fontsize(30) | |
ax.yaxis.label.set_fontsize(26) | |
ax.grid() | |
plt.legend(loc='best') | |
plt.show() |
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