You receieve inheritance of $200,000, which you will receive in 3 years. You plan to retire in 23 years, and you will invest this $200,000 wisely, beginning on the day you receive the funds, earning 7% per year until then.

1.What is the PV today of this inheritance assuming interest rates are currently 5%? (My answer is $231,525)

2.What will you retirement fund be worth on the day you retire? (My answer is $1,097,551.18)

3.If your life expectancy is 86 years, and you are 40 years old today, what amount will you be able to draw out each year in your retirement? Assume an interest rate during retirement years of 5% and ignore taxes and the payment is at the end of the year. (this is where I'm confused)