4. Clyde reaches retirement at the age of 65. He has accumulated $2,400,000 in the bank. Clyde uses the entire amount (PV) to buy an annuity that will provide him with a guaranteed annual income for 25 years. The annual interest rate r = 6.85%. Data: (a) How much annual income (R) can $2,400,000 buy over the 25-year retirement period? (b) Compute the interest Clyde earns over the 25-year period. LAY OUT EACH PROBLEM SOLUTION EXACTLY AS SHOWN BELOW. Sample Problem: At the end of every 6-month period for 15 years, Sally deposits $1,200 into a savings account paying 5% compounded semiannually. Here's how to show your work. Data: 1 = 15 years m=2 r=5% n=30 i = 2.5% R= $1,200 Type 1-A (a) What is Sally's accumulated balance after 15 years? FV = $52,683 (b) How much interest does she earn? interest $16,683