You have been recently hired as a financial consultant by Independent Investment Partners, a well-known wealth management firm with offices in all 50 states. Your first assignment is to advice a client, Maureen Smith, who is considering whether to accept an early retirement package offered by her firm. Ms. Smith currently earns a $70,000 and she is 50 years old. She is good health and expects that she could work for another 25 years before retirement. If she rejects the early retirement offer and continues to work for her company, her annual salary could increase at the rate of 3.5% per year. She wants you to advise her whether she should accept the early retirement offer or not. Your firm could guarantee her a rate of return of 10% annually on her investment.

How much could Maureen withdraw in equal amount over the next 25 years (i.e. to her 90th birthday) from her savings? SHOW WORK