A. You decide that Social Security will either not be around when you decide to retire or will not provide sufficient retirement income. Therefore, you want to set a retirement account through your bank. 1. Determine how much you can invest each month. This can be based on your dream income, or your actual income. For example: you wish to save 10% of your gross income. 2. Assume you will operate your business until you are 65 years old. a. Determine the number of years from your age today until you are 65 . b. Calculate the number of monthly payments you can make until you are 65 . 3. Assume the account's return is 2.5%, compounded monthly. Explain how to find the Future Value of your retirement account as an Ordinary Annuity, clearly delineating your method (Calculator entries or formula/equation.) This is a generic explanation that could be used for any calculation. Next, explain what must change to find an Annuity Due. 4. Show your work. Using the method explained in A3, determine Future Value of your retirement account for an: a. Ordinary Annuity. b. Annuity Due. 5. Explain what is meant by Future Value of your retirement account that you calculated in item A4a. B. Now consider your life after retirement. Assume you will be withdrawing funds from your retirement annuity from age 65 until age 90 . 1. Determine the number of years you will be withdrawing funds. 2. Calculate the number of monthly payments. 3. Identify how much you would like to receive from your retirement annuity each month. Estimate what you think you will need each month to live comfortably after retirement. 4. Explain how to find how much you will need in your account when you reach 65 to be able to fund your monthly retirement annuity (amount in B3), the Present Value of this account, clearly stating your method (Calculator entries or formula/equation.) This is a generic explanation that could be used for any calculation. 5. Show your work. Using the method from B4, find the Present Value of the Ordinary Annuity you are using to determine how much you will need in your retirement account when you reach 65. Use 4% compounded monthly. 6. Explain what is meant by Present Value of your retirement account that you calculated in item B5. C. You may need to reconsider your monthly amount you planned to invest in part A1, given your desired monthly retirement withdrawal in part B3. 1. Explain how to find the monthly payments needed to be invested in a Sinking Fund to accumulate the PV amount that you calculated in Part B5. Assume the account's return is 2.5%, compounded monthly, with deposits from now until you are 65 (the number of payments computed in part A.2.b.) Clearly state the method you will use (Calculator entries or formula/equation.) This is a generic explanation that could be used for any calculation. 2. Using the method from C 1, find the amount of the monthly payment you must deposit into a Sinking Fund to accumulate the PV amount that you calculated in Part B5. Show your work. 3. Explain what is meant by the Sinking Fund in terms of this project. D. Compare your monthly Sinking Fund calculation in Part C to the amount that you identified for your monthly retirement investment in Part A1. 1. Determine whether your planned monthly retirement investment (Part A1) is enough to fund your Sinking Fund payments for your (dream) retirement (Part B3). Explain why or why not. 2. Explain how you used the computations for Future Value (A4a), Present Value (B5), and monthly payments into your Sinking Fund (C2) to reach your conclusion. 3. Assume that you will need $2000 per month more than you anticipated for your retirement payments. Explain adjustments that you will make with your monthly retirement investment amount to be able to fund your (dream) retirement. Note: This answer should include more than simply adding $2000 to your payments