Question:Sam retires today at the age of 65 and invests his life savings
into an account...
Question
Sam retires today at the age of 65 and invests his life savings
into an account...
Sam retires today at the age of 65 and invests his life savings
into an account that is guaranteed to earn 4.12% per year. Sam
expects to live to the age of 87, withdraw $0.112mln from the
account at the end of each year, and leave his heirs $1.818mln
(this amount will be the account balance at the time of his death).
How much is Sam putting in the account today, in $ million? Round
to the nearest $0.001 million. E.g., if your answer is $1,234,758,
record it as 1.235.