Annuities at the time of retirement christine expects to


Question: ANNUITIES At the time of retirement, Christine expects to have a sum of $500,000 in her retirement account. Assuming that the account pays interest at the rate of 5%/year compounded continuously, her accountant pointed out to her that if she made withdrawals amounting to x dollars per year (x > 25,000), then the time required to deplete her savings would be T years, where

T = f(x) = 20 ln(      x         )        (x> 25,000)
                     ( x - 25,000 )

a. Plot the graph of f, using the viewing window [25,000, 50,000] × [0, 100].

b. How much should Christine plan to withdraw from her retirement account each year if she wants it to last for 25 yr?

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