Problem: A retirement plan guarantees to pay to you or your estate a fixed amount for 20 years. At the time of retirement you will have $73,425 to your credit in the plan. The plan anticipates earning 9% interest. Given the following information, how much will your annual benefits be?
Present value of $1 PVIF = .18
Future value of $1 FVIF = 5.6
Present value of annuity PVIFA = 9.129
Future value of annuity FVIFA = 51.16