1. Joe is ready to retire. A glance at his 401(k) statement indicates that he has $450,000. If the funds remain in an account earning 3.5%, How much could he withdraw at the beginning of each month for the next 26 years?
2. Alex bought a 10-year annuity-immediate with annual payments of 10,000 under an annual rate of 8%. Six years into the future, right after receiving the 6th payment from the annuity, the market interest rate fell down to 4%, so she then decided to immediately sell all of her future earnings at the new market interest rate. Find her annual yield rate.