In: Finance
A worker age 45 wishes to accumulate a fund for retirement by depositing $2,500 at the beginning of each year for 20 years. Starting at age 65 the worker plans to make 20 annual withdrawals at the beginning of each year. Assuming all payments are certain to be made, find the amount of each withdrawal starting at age 65 to the nearest dollar, if the effective rate of interest is 9% during the first 20 years but only 8% thereafter.