Question #$8(5$ Marks$)$

Orlando has just retired and has a pension amount of $$640,000$ today. The interest rate is

expected to be $6\%$ per year for the foreseeable future. Orlando has the following $2$ options

available for his pension:

A$.$ Withdraw money at the beginning of each year for the next $25$ years with the first

withdrawal starting today.

B$.$ Withdraw money at the end of each of the next $25$ years with the first withdrawal

happening at the end of this year.

How much will he be able to withdraw under each option if the intention is to have no money

left in his pension after $25$ years.