A news article that was mentioned in class reported that Bill Ackman, who runs Pershing Square Capital Management, recently proposed the following: ...the government could establish and fund investment accounts for every child born in America. The funds could be invested in zero-cost equity index funds, be prohibited from withdrawal until retirement, and could compound tax free for 65 years. At historical rates of equity returns of 8% per annum, a $6,750 at birth retirement account...would provide retirement assets of more than $1 million at age 65." Suppose that Ackman's plan works and you have exactly $1 million available on the day you retire. In retirement, you will invest more conservatively and expect to have a lower annual rate of return of 2.4% (use this rate for the questions below). 7. How much will you be able to withdraw at the end of each year in retirement if you expect to make your last withdrawal at age 85 (i.e. 20 withdrawals in total)? 8. Suppose that instead you would like to withdraw $100,000 at the end of each year in retirement. How long will your retirement savings of $1 million last you? 9. Suppose that you want to make monthly withdrawals in retirement and expect to make your final withdrawal at age 85 (i.e. 20 years in retirement). Which of these options are feasible for you given that you have $1 million available when you retire: I. Withdrawing $6,000 at the end of every month. II. Withdrawing $10,000 at the end of each month for the first 5 years and then withdrawing $2,000 at the end of each month thereafter