Suppose your client is also very generous, and wishes to leave the entire $4,000,000 in savings to charity and her children upon her death. Also, to help assure its value, at retirement she plans to move all her savings into a less risky fund expected to earn an effective annual rate of 3%. Given her goal and the change in expected return, how much can she plan to withdraw from her account each month until her death?

The present value of a $1,000 per year perpetuity at an annual rate of 10% is $10,000. What is the present value of a $1,000 per year 100-year annuity at an annual rate of 10%?