"Paul adams own health club in downtown Los Angeles. He charges his customers an annual fee of $500 and has an existing customer base of 500. Paul plans to raise the annual fee by 6% every year and expects the club membership to grow at a constant rate of 3% for the next 5 years. The over all expenses of running the health club are $75,000 a year and are expected to grow at the inflation rate of 2 percent annually. After five years Paul plans to buy a luxury boat for $500,000, close the health club and travel the world in his boat for the rest of his life. What is the annual amount the Paul can spend while on his world tour if he will have no money left in the bank when he dies? Assume Paul has a remaining life of 25 years and earns 9% on his savings hide problem.,
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