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Robert Watts has just retired after 25 years with the electric company. His total pension funds have an accumulated value of $500,000, and his life
Robert Watts has just retired after 25 years with the electric company. His total pension funds have an accumulated value of $500,000, and his life expectancy is 20 more years. His pension fund manager assumes he can earn a 9 percent annual return on his assets. What will be his yearly annuity (i.e., the annual withdrawal amount) for the next 20 years?
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