Answer:
To withdraw $45,000 each year for 20 years, you will need $675,521.48 in your account at the beginning.
To calculate this amount, we can use the formula for present value of a series of payments, which is:
PV = FV / (1 + r)^n
Where:
PV = present value (the amount you need in your account at the beginning)
FV = future value (the amount you will have after 20 years, which is $45,000 per year x 20 years = $900,000)
r = interest rate (5% in this case)
n = number of periods (20 years in this case)
Plugging in the values, we get:
PV = $900,000 / (1 + 0.05)^20
PV = $675,521.48
Therefore, you will need $675,521.48 in your account at the beginning to withdraw $45,000 each year for 20 years, earning a 5% interest rate.
Explanation: