A retiree deposits $400,000 into a retirement account. The account is projected to earn 10% per year. The retiree withdraws $50,000 immediately and continues to withdraw the same $50,000 amount for the next three years. In each year thereafter the withdrawal amount is reduced by an amount 11G". The retirement amount reaches a zero balance in the 15th year after the initial deposit. Find the value of "G".

• Draw a CFD using a yearly time line showing given information in the problem.
• Use the appropriate Standard Notation Equations that represent the Total Present Worth (P) for the annuity and the decreasing arithmetic gradient. (A shifted time line will be needed for the Gradient!) The Gradient G is unknown in this standard notation equation.
• Do not solve this series of cash flows as Single Payments.