Annuity Values.
Response to the following problem:
You are planning your retirement in ten years. You currently have $150 000 invested in a money market fund and $450 000 in a share market fund. You plan to add $9000 per year at the end of each of the next ten years to the money market fund. The share market fund will earn an 11.5% return and the money market fund will earn a 7.5% return. When you retire, you plan to withdraw an equal amount for each of the next 25 years at the end of each year and have nothing left at the end. Additionally, when you retire you will transfer your two funds into an account that earns 6.75% per year. How much can you withdraw each year?