Emily is 45; she inherited $75,000. A large portion of that money will be invested in an account earning 11% return. The money will accumulate for 20 years. She would like to deposit enough money today and start making withdrawals of $50,000 per year starting at age 66 (21 years from now) and continuing for 24 more years, when she will make her last withdrawal at age 90. Emily will continue to earn 11% on money in her investment account during her retirement years, and she wants the balance in her retirement account to be $0 after her withdrawal on her ninetieth birthday.

a. How much money must Emily set aside now to achieve that goal? It may be helpful to construct a timeline to visualize the details.

b. If Emily can earn 11% on her investments from now until age 65, but she earns just 8% on her investments from age 65 to 90, how much money does she need to set aside today to achieve her goal?

c. Is she puts the $75,000 into an account earning 11%. As in part b, she will earn only an 8% return on her investments after age 65. If she withdraws $50,000 as planned on each birthday from age 66 to age 90, how much will be left in her account for her heirs after her last withdrawal?

I know I am supposed to use future value, present value and annuity concepts but I am not sure how to set it up, any help would be appreciated.

Thanks!