Hello,

Would you help me with solving this problem, please?

Thank you in advance!

Millhouse graduated 5 years ago with a degree in business administration and is currently employed as a middle level manager for the same firecracker company his dad already worked for. His current annual salary of $60,000 has increased at an average rate of 5% per year and is projected to increase at that rate for the future. The firm has had a voluntary retirement savings program in place, whereby, employees can contribute up to 11% of their gross annual salary (up to a maximum of $11,000 per year) and the company will match every dollar that the employee contributes. Unfortunately, Millhouse did not listen to his finance instructor (which is understandable, because you cant really trust those Germans) and has not yet taken advantage of the retirement savings program. He opted instead to buy a new car, rent an expensive apartment and go out to Moes every night. However, with wedding plans on the horizon, Millhouse has finally come to the realization (with the help of his fiance Lisa) that he had better start putting away some money.

5) If Millhouse saves up a million dollars by the time he retires (at age 65), how much can he withdraw each month in equal dollar amounts, if he figures he will live up to the age of 85 years? Assume that his investment fund yields a rate of return of 8% compounded monthly.