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py and C/Y are the same, unless specifically instructed otherwise.) (Assume P/Y and CA Someone just won the Michigan Lottery of S1 million. After paying income taxes, she is left with $610,000. This person's job earns her $60,000 per year. She decides to quit her job and pull $60,000 per year (55000 at the end of each month) from her winnings. If the S610,000 is invested at 7%, how long will it last? How many months? Years? This person is 25 years old. How old will she be when the $610,000 run out? 2. A different person age 50 wins the lottery and, after taxes, ends up with $610,000. This person thinks she can successfully invest this money at 8%. She would like to draw an annual income from this investment until it is gone at age 85. How much could she withdraw once a year at the beginning of each year, so that it would last for 35 years? 3. When you retire you would like to have accumulated a fund that could supplement the income you receive from your company's pension and Social Security. You want this to provide you an additional $1000 per month (at the end of each month) for 35 years in retirement. If that fund could earn 7% (compounded monthly) how big does that fund need to be? 4. Same scenario as in #3, but you are concerned about inflation. Prices go up every year, and if you are going to maintain your standard of living, you need to be able to increase your withdrawals. If you need to increase you withdrawals by 5% per year, now how big does your fund need to be