Your client currently has accumulated capital of $560,000 and hopes to retire this year. She wants to

Question:

Your client currently has accumulated capital of $560,000 and hopes to retire this year. She wants to receive an payment at the beginning of each year for the next 20 years. If the capital can earn 6.5% compounded annually, what maximum annual payment can she receive and just deplete the capital after 20 years? (Taken from CIFP course materials.)
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...