You received a high-yield savings account that contains $1,000,000. The account has a 7% annual interest rate and you want to take out a constant amount every year for 40 years.
Using Microsoft Excel, decompose your annual withdrawals into interest revenue and revenue earned from principal deduction (for example, at t=1, you get 7% x $1,000,000 in interest, and take the remaining amount from the principal – these together should equal the amount you determined in (1)). Graph interest revenue and principal revenue together, with time on the xaxis. Report the graph based on all 40 years, and only report the interest revenue and principal revenue numbers for the first 10 years.