Step-by-step explanation:
Remember that angles in the same segment are equal.
In here, AD is the segment, which means that angle ACD = angle ABD = 28°.
PV = P(1 - (1 + r)^-n) / r; where P is the periodic withdrawal = $100,000; r = rate = 5% = 0.05; n = number of periods = 20 years.
PV = 100000(1 - (1 + 0.05)^-20) / 0.05 = 100000(1 - 1.05^-20) / 0.05 = 100000(1 - 0.3769) / 0.05 = 100000(0.6231) / 0.05 = 100000(12.4622) = 1,246,221 ≈ $1,250,000
