$($Click the icon to view Present Value of $$1$ table.$)$

$($ Click the icon to view Present Value of Ordinary Annuity of $$1$ table.$)$

$($Click the icon to view Future Value of $$1$ table.$)$

$($Click the icon to view Future Value of Ordinary Annuity of $$1$ table.$)$

Read the requirements

To make the plan work, you must accumulate this amount by retirement

Requirement $2.$ How does this amount compare to the total amount you will withdraw from the investment during retirement? How can these numbers be so different?

Over the course of your retirement you will be withdrawing

However, by age $40$ you only need to have invested

These numbers are different because:

A$.$ You need to have the same amount accumulated as you will withdraw because you will not earn further interest on your investment when you reach retirement.

D$.$ None of the above