9. You plan to retire in exactty 21 years. Your goal is to create a fund Fundlng your retirement Personal Finance Problem that will allow you to receive $21,000 at the end of each year for the 25 years between retirement and death (a psychic told you that you would die exactly 25 years after you retire). You know that you will be able to earn 12% per year during the 25-year retirement period a. How large a fund will you need when you retire in 21 years to provide the 25-year, $21,000 retirement annuity? b. How much will you need today as a single amount to provide the fund calculated in part a if you eam only 10% per year during the 21 years preceding retiramentr c. What effect would an increase in the rate you can eam both during and prior to retirement have on the values found in paris a and b Explain. d. Now assume that you will ear 11% from now through the end of your retirement. You want to make 21, end-of-year deposits into your retirement account that will fund the 25-year stream of $21,000 annual annuity payments. How large do your annual deposits have to be? a. The amount of the fund you will need when you retire in 21 years to provide the 25-year, $21,000 retirement annuity is (Round to the nearest cent.) b. The amount you will need today as a single amount to provide the fund calculated in part a if you earn only 10% per year during the 21 years preceding retirement is $ (Round to the nearest cent.) c. What effect would an increase in the rate you can earn both during and prior to retirement have on the values found in parts a and b? (Select from the drop-down menus.) In the calculation of present values, you should notice that the higher the interest rate, the lower the present value Therefore, in part a and b both values would be (1) needed in 21 years for the annuity and a (3) . In other words, a (2) sum would be amount would have to be put away today to accumulate the needed future sum. d. Assuming that you will earn 11% from now through the end of your retirement, the amount of the fund will you need when you retire in 21 years is $ . (Round to the nearest cent.) If you want to make 21, end-of-year deposits into your retirement account that will fund the 25-year stream of $21,000 annual annuity payments, your annual deposits will be$ (Round to the nearest cent.) (3) O higher O smaller O equal (1)O equal (2) O lower O higher smaller O higher O equal