A 55 year old employee wants to retire in 5 years from now. Then he wants $40,000 per year, for a period of 25 years. He just inherited $1,000,000. The interest rate is 11% per year. He wants to put in the bank just enough to have his pension arranged. Hewants to spend the money that is not necessary (if any) on some trips and parties. How much money (if any) can he spend now ?

-Draw the cash flow diagram

-Show the procedure