Final answer:
Mrs. Sonilana's question about retirement withdrawals involves calculating annuities with a known principal, return rate, and time period to achieve a desired future value, requiring an understanding of annuities and the time value of money.
Step-by-step explanation:
The student's question about Mrs. Sonilana's retirement withdrawals requires us to calculate the annuity payments when the principal amount, expected return rate, and the time period are known, and a future value needs to remain.
This is a problem that involves understanding the concepts of annuities and the application of time value of money.
Unfortunately, the student's question doesn't provide enough details to answer it directly. However, general guidance can be provided on how to approach such a problem using financial formulas that incorporate the present value (PV), future value (FV), interest rate (i), and the number of periods (n).
The formula to determine the annual withdrawal can be represented as:
Withdrawal = (PV - FV / ((1 + i)^n - 1) / i
In this case, the PV would be $6,310,100, the FV would be $2,000,000, the interest rate (i) would be 5% or 0.05, and the number of periods (n) would be 20 years.
Plugging these values into the formula would allow Mrs. Sonilana to calculate the equal annual withdrawals to arrive at the desired FV after 20 years.