Question: Delbert Ray is planning to retire this year and draw upon the accumulated savings in his pension plan, which amount to $205,800. Mr. Ray is

Delbert Ray is planning to retire this year and draw upon the accumulated savings in his pension plan, which amount to $205,800. Mr. Ray is vested with 80 percent of the accumulated funds and, based on his life expectancy, has been promised an annual annuity (income) rate of 3.5 percent. What is Delbert Ray’s expected annual retirement income from his pension plan?

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