Assume that you have saved $1,500,000 in your retirement account when you reach age 65 and retire.

a. What is the interest rate that you believe is appropriate to use for compounding your savings after you retire? Why is this figure different if the answer is 2.7%?

b. How many years will you plan to withdraw funds in retirement? (Justify your answer.)

c. What is the future value you will use in this annuity calculation? (Justify your answer.)

d. Using your assumption from Part A, how much money can you spend each year?