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John Watts has just retired after 35 years with a company. His total pension funds have an accumulated value of $1,500,000 and his life expectancy

John Watts has just retired after 35 years with a company. His total pension funds have an accumulated value of $1,500,000 and his life expectancy is 25 more years. His pension fund manager assumes he can earn a 7 percent annual return on his assets. What will be his yearly annuity (i.e., the annual withdrawal amount) for the next 25 years?

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