Tim just had his 62nd birthday. On his 65th birthday Tim will retire. Tim currently has $1,000,000 invested in a fund that gives 3.5% a year. Tim plans on withdrawing $72,000 on each birthday starting on his 65th birthday to cover his retirement expenses.

How much money will be left in the fund after Tim makes his withdrawal on his 80th birthday?

b. You plan on taking a 10-year loan of $500,000. The payments on the loan are annual, starting a year from today. The bank gives you a quote of 8% APR compounded monthly. 

 i.  What is your annual payment?

 ii.  In year 8, after making your 8th payment, you decide to repay the outstanding balance. How much money will you need to pay?