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The question asks how much Chen will need to withdraw annually over 15 years from her savings of $677,000, assuming an interest rate of 7%.

To solve this, we use the **Present Value of an Annuity (PVA) formula**:
\[
PVA = \frac{PMT \times (1 - (1 + r)^{-n})}{r}
\]
Where:
- $ PVA $ = Present Value of the Annuity ($677,000)
- $ PMT $ = Annual payment (what we're solving for)
- $ r $ = Annual interest rate (7% or 0.07)
- $ n $ = Number of years (15)

Rearranging to solve for $ PMT $ (the annual withdrawal):
\[
PMT = \frac{PVA \times r}{1 - (1 + r)^{-n}}
\]

Let me calculate the annual withdrawal amount for you.Chen will need to withdraw approximately **$74,330.96** each year for 15 years, assuming she earns a 7% annual return on her money.

Would you like more details or have any questions?

Here are some related questions to explore:
1. How would the annual withdrawal change if the interest rate were 6% instead of 7%?
2. What if Chen wanted to withdraw over 20 years instead of 15 years?
3. How much total interest will Chen earn over the 15 years at the 7% interest rate?
4. How would her annual withdrawal change if she started with $800,000 instead of $677,000?
5. What is the effect of inflation on the real value of her withdrawals over time?

**Tip:** The higher the interest rate, the lower the annual withdrawal amount needed to maintain the same future balance.

Chen is 65 years old and about to retire. She has $677,000 saved to supplement her pension and Social Security and would like to withdraw it in equal annual dollar amounts so that nothing is left after 15 years. How much does she have to withdraw each year if she earns 7 percent on her money?

Determine how much Chen should withdraw annually from $677,000 over 15 years, assuming a 7% interest rate. This problem involves financial mathematics concepts such as present value of annuities, interest rates, and equal annual withdrawals. Suitable for students with knowledge of annuities and interest rate calculations.

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