Question: Your mother wants to save $ 2 , 0 0 0 , 0 0 0 for retirement. She plans to invest annually in an account

Your mother wants to save $

2, 000, 000

for retirement. She plans to invest annually in an account that pays

6.00 %

over the next

20

years, and he wants

25

end

-

-

year withdrawals during her retirement. During the savings

(

or accumulation period

)

the interest compounds quarterly, but during the withdrawal period, interest compounds annually.

Provided that she reaches her savings goal, how much she would be able to withdraw annually?

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