Problem:
Today is your retirement day (consider that day to be t=0). Your current life retirement savings have the (present) value of $2,000,000. Your retirement savings will be invested in an account earning r=6% per year for (at least) the next 30 years. Starting exactly one year from today, you plan to take your first retirement withdrawal ($C). All your subsequent withdrawals will grow by g=2.5% (so, your second years withdrawal will be $C*(1+g), etc.). The very last withdrawal will be made exactly 30 years from today (today being your retirement day), after which you do not plan to have any money in your retirement account.
Required:
Question 1: What should be the value of your first withdrawal ($C) that will allow you to follow the above described retirement strategy?
Describe in detail and provide all workings and methods.