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Problems:

For your retirement, you have $$400,000$ invested into an account at a $6\%$ annual interest rate. How long will you receive yearly payments of $$30,000?($Ans$.27\mathrm{.}62$ years$)$

You decide to put $$10,000$ dollars into an account for $10$ years at $6\%$ annual interest. After $10$ years you want to start withdrawing money as a yearly annuity at $6\%$ annual interest. How much will you receive if you want the annuity to last for $5$ years? $($Ans$.$ $$4,251)$

You just started annuity fund which earns $10\%$ compounded annually and you contribute same amount each year. You plan to retire in $30$ years and withdraw $$80,000$ each year for $20$ years. The withdrawal starts $1$ year after your last contribution. How much should you contribute annually? $($Ans$.$ $$4,155)$

The Powerball was won by a single individual. The individual was given two choices: receive $26$ payments of $$7$ million each year, with the first payment to be made now; or receive a single equivalent lump$-$sum payment. If the state uses an interest rate of $4\%$ per year, what is the amount of the lump$-$sum payment? $($Ans$.$ $$116\mathrm{.}36$ M$)$

You want to set up an investment and have the option of either paying a lump sum of $$10,000$ into a CD at $4\%$ annual interest or paying a yearly annuity of $$1,100$ for $10$ years also at $4\%$ interest. Which of the two is the better option after $10$ years? $($Ans$.CD=$$$14,800$; Annuity $=$$$13,206$ : CD is the better option.$)$

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