Annual amount she can withdraw from her fund

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1. Stacy is 35 years old and will retire at the age of 65. A financial planner tells her that if she wants a sum of $1,000,000 by the time she is 65. How much should she save at the end of each year from now till she is 65 so that she can accumulate $1,000,000, if interest rates are expected to remain 5% on average?

2. If the interest rates change to 7% when she is 65 years old, what is the annual amount she can withdraw from her fund of $1,000,000 till she is 90 years old?

Please answer the highlighted question 2, step by step.

Reference no: EM131861478

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