You expect to retire next month at the age of seventy. Upon retirement you expect to convert all of your assets (except your condo in Florida) into cash, which will then be invested in a tax-free municipal bond yielding 6 percent. You intend to use this fund for two purpose.

a. to provide a lump sum of $350,000 needed to enter a home for aged executives ten years from now on the off chance that you will live to be eighty. If you do not live to eighty, this fund will pass to your heirs.

b. to provide a ten-year annuity that you will use to supplement your retire-ment plan while you live in Florida for the next ten years. Assuming you will have $600,000 after converting your assets to cash, how much of an annuity can you establish after allowing for the $350,000 to enter the home?