help, all requirements included

3 Question Help You are planning for a very early retirement. You would like to retire at age 40 and have enough money saved to be able to withdraw $220,000 per year for the next 30 years (based on family history, you think you will live to age 70). You plan to save by making 15 equal annual installments (from age 25 to age 40) into a fairly risky investment fund that you expect will earn 10% per year. You will leave the money in this fund until it is completely depleted when you are 70 years old. (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. Requirement 1. How much money must you accumulate by retirement to make your plan work? (Hint: Find the present value of the $220,000 withdrawals.) (Round your final answer to the nearest whole dollar.) To make the plan work, you must accumulate $ 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. OB. You need to have far less accumulated than what you will withdraw because you only withdraw a portion of the investment every yearthe balance remains invested where it continues to earn 10% interest. OC. You need to have far more accumulated than what you will withdraw because you will withdraw a large portion of the investment every yearthe balance remains invested where it continues to earn 10% interest. OD. None of the above O A. You retir Reference te OB. You rem Oc. balance You rem Present Value of $1 OD. Non 5 7 0.257 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.476 0.437 0.437 0.402 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 8 0.923 0.853 0.789 0.731 0.677 0.627 0.5820.540 0.502 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.233 9 0.914 0.837 0.766 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 10 0.905 0.820 0.744 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.322 0.270 0.247 0.227 0.191 0.162 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.237 0.215 0.195 0.162 0.135 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.208 0.187 0.168 0.137 0.112 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 14 0.870 0.758 0.661 0.5770.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.239 0.183 0.140 0.123 0.108 0.084 0.065 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.250 0.212 0.180 0.180 0.130 0.095 0.081 0.069 0.051 0.038 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 23 0.795 0.634 0.507 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.066 0.043 0.035 0.028 0.019 0.013 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 26 0.772 0.598 0.464 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.053 0.033 0.026 0.026 0.021 0,014 0.009 27 0.764 0.586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.047 0.029 0.023 0.018 0.011 0.007 28 0.757 0.574 0.437 0.333 0.255 0.196 0.150 0.116 0.090 0.069 0.042 0.026 0.020 0.016 0.010 0.006 29 0.7490.563 0.424 0.321 0.243 0.185 0.141 0.1070.082 0.082 0.063 0.037 0.022 0.017 0.014 0.008 0.005 30 0.742 0.552 0.412 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.033 0.020 | 0.015 0.012 0.007 0.004 40 0.672 0.453 0.307 0.208 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.011 0.005 0.0040.003 0.001 0.001 50 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.034 0.021 0.013 0.009 0.003 0.001 0.001 0.001 Choose froll Print Done O A. You need to retirement you reach i Reference he balance OB. You need to remains inve O C. You need to remains invel OD. None of the arthe balance 1 1.126 1.216 1.311 1.360 1.412 1.464 en 1.504 1.949 14 Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.010 1.020 1.030 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.120 1.140 1.150 2 1.020 1.040 1.061 1.082 1.103 1.124 1.145 1.166 1.188 1.210 1.254 1.300 1.323 3 1.030 1.061 1.093 1.125 1.158 1.191 1.225 1.260 1.295 1.331 1.405 1.482 1.521 4 1.041 1.082 1.170 1.262 1.574 1.689 1.749 1.051 1.104 1.159 1.217 1.276 1.338 1.403 1.469 1.539 1.611 1.762 1.925 2.011 6 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.587 1.677 1.772 1.974 | 2.1952.313 7 1.072 1.149 1.230 1.316 1.407 1.606 1.714 1.828 2.211 2.502 2.660 8 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1.851 1.993 2.144 2.476 2.853 3.059 9 1.094 1.195 1.305 1.423 1.551 1.689 1.838 1.999 2.172 2.358 2.773 3.252 3.518 10 1.105 1.219 1.344 1.480 1.629 1.791 1.967 2.159 2.367 2.594 3.106 3.707 4.046 11 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.4794.226 4,652 12 1.127 1.268 1.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4.818 5.350 13 1.138 1.294 1.469 1.665 1.886 2.133 2.410 2.720 3.066 3.452 4.363 5.492 6.153 1.149 1.319 1.513 1.732 1.980 2.261 2.579 2.937 3.342 3.798 4.887 6.261 7,076 15 1.161 1.346 1.558 1.801 2.079 2.397 2.759 3.172 3.642 4.1775.474 7.138 8.137 16 1.173 1.373 1.605 1.873 2.183 2.540 2.952 3.426 3.970 4.595 6.130 8.137 9.358 17 1.184 1.400 1.653 1.948 2.292 2.693 3.159 3.700 4.328 5.054 6.866 9.276 10.76 18 1.196 1.428 1.702 2.026 2.407 2.854 3.380 3.996 4.717 5.560 7.690 10.58 12.38 19 1.208 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 8.613 12.06 14.23 20 1.220 1.486 1.806 2.191 2.653 3.2073.870 4.661 5,604 6.727 9.646 13.74 16.37 21 1.232 1.516 1.860 2.279 2.786 3.400 4.141 4.141 5,034 6.109 7.400 10.80 15.67 18.82 22 1.245 1.546 1.916 2.370 2.925 3.604 4.430 5.437 6.659 8.140 12.10 17.86 21.64 23 1.257 1.577 1.974 2.465 3.072 3.820 4.741 5.871 7.258 8.954 13.55 20.36 24.89 24 1.270 1.608 2.033 2.563 3.225 4.049 5.0726.341 7.911 9.850 15.18 28.63 25 1.282 1.641 2.094 2.666 3.386 3.386 4.292 5.427 5.4276.848 8.623 10.83 17.00 26.46 32.92 26 1.295 1.673 2.157 2.772 3.556 4.549 3.556 4.549 5.8077.396 9.399 11.92 19.04 30.17 37.86 27 1.308 1.707 2.883 3.733 4.822 6.214 10.25 13.11 21.32 34.39 43.54 28 1.321 1.741 2.288 2.999 3.920 5.112 6.649 8.627 11.17 14.42 23.88 39.20 50.07 29 1.335 1.776 2.357 3.119 4.116 5.418 7.114 9.317 12.17 15.86 26.75 44.69 57.58 30 1.348 1.811 2.427 3.243 4.322 5.743 7.612 10.06 13.27 17.45 29.96 50.95 66.21 40 1.489 2.208 3.262 4.801 7.040 10.29 14.97 | 21.72 21.72 31.41 45.26 93.05 188.9 | 267.9 50 1.645 2.692 4.384 7.107 11.47 18.42 29.46 46.90 74.36 46.90 74.36 117,4 289.0 117.4 | 289.0 700.21,084 23.21 Choose from any lis ? 2.221 7.988 Print Do Done O A. You retir A Reference OB. You te rem balance O c. You rem OD. Nor Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 1.605 1.566 1.528 3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246 2.174 2.106 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 2.914 2.855 2.798 2.690 2.589 5 4.853 4.713 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.605 8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 4.344 4,078 3.837 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.031 10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.6505.216 5.019 4.833 4.833 4.494 4.192 11 10.368 9.7879.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4.327 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.421 5.197 4.793 4.439 13 12.134 11.348 10.635 | 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5.583 5.3424.910 4.533 14 13.004 12.106 | 11.296 | 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.468 5.008 4.611 15 13.865 12.849 11.938 11.11810.380 9.712 9.108 8.559 8.559 8,061 7.606 6.811 6.142 5.847 5.575 5.092 4.675 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.9746.265 6.265 5.954 5.954 5.669 5.162 17 15.562 14.292 | 13.166 | 12.166 11.274 10.477 | 9.763 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.775 18 16.398 14.992 | 13.75412.65911.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 6.128 5.818 5.273 4.812 19 17.226 15.678 14.32413.134 12.085 | 11.158 10.336 9.604 8.950 8.365 7.366 | 6.550 6.550 6.1985.877 5.316 4.844 20 18.046 | 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.469 6.623 6.259 5.929 5.353 4.870 21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.6497.562 6.687 6.3125.973 5.384 4.891 22 19.660 17.658 15.93714.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.743 6.359 6.011 5.410 4.909 23 20.456 18.292 | 16.444 | 14.857 13.489 | 12.303 11.272 10.371 9.580 8.883 7.718 6.792 6.399 6.044 5.432 4.925 24 21.24318.91416.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 6,434 6.073 5.451 4.937 25 22.023 19.52317.413 | 15.622 14.094 12.783 11.654 10,675 9.823 9,077 7.843 6.8736.464 6.097 6.097 5.467 4.948 26 22.795 20.12117.87715.983 14.375 13.003 11.826 10.810 9.929 9.1617.8966.906 6,491 6.118 5.480 4.956 27 23.560 20.707 18.32716.330 14.643 13.211 |11.987 10.935 10.027 9.237 7.9436.935 6.514 6.136 5.492 4.964 28 24.316 21.28118.764 16.663 14.898 13.406 12.13711.051 10.116 9.307 7.984 6.961 6.534 6.152 5.502 4.970 29 25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.022 6.983 6.551 6.166 5.510 4.975 30 25.808 22.396 19.600 17.292 15.372 | 13.765 | 12.409 11.258 10.274 9.4278.055 7.003 6.566 6.177 5.517 4.979 40 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.7798.244 7.105 6.642 6.233 5.548 4.997 50 39.196 | 31.42425.73021.482 18.256 15.762 13.801 | 12.233 10.962 9.915 8.304 7.133 6.661 6.246 5.554 4.999 Choose froi ? Print Done O A. You need to retirement. you reach i Reference - he balance OB. You need to remains inve OC. You need to remains inve ar the balance OD. None of the 1 1.000 21.02 Future Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2 2.010 2.020 2.030 2.040 2.040 2.050 2.050 2.060 2.070 2.080 2.090 2.100 2.120 2.140 2.150 3 3.030 3.060 3.091 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.374 3.440 3.473 4 4.060 4.122 4.184 4.246 4.310 4.375 4.440 4.506 4.573 4.641 4.779 4.921 4.993 5 5.101 5.204 5.309 5.416 5.526 5.637 5.751 5.867 5.985 6.105 6.353 6.610 6.742 6 6.152 6.308 6.468 6.6336.802 6.975 6.8026.975 | 7.153 7.336 7.523 7.716 8.115 8.536 8.754 7 7.214 7.434 7.662 7.898 8.142 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 8 8.286 8.583 8.892 9.214 9.549 9.897 10.260 10.260 10.64 11.03 11.44 12.30 13.23 13.73 9 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 10 10.46 10.95 11.46 12.01 12.58 13.18 13.82 14.49 15.19 15.94 17.55 19.34 20.30 11 11.57 12.17 12.81 13.49 14.21 14.97 15.78 16.65 17.56 18.53 20.65 23.04 24.35 12 12.68 13.41 14.19 15.03 15.92 16.87 17.89 18.98 20.14 21.38 24.13 27.27 29.00 13 13.81 14.68 15.62 16.63 17.71 18.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 14 14.95 15.97 17.09 18.29 19.60 22.55 24.21 26.02 27.98 32.39 37.58 40.50 15 16.10 17.29 18.60 20.02 21.58 23.28 25.13 27.15 29.36 | 31.77 37.28 43.84 47.58 16 17.26 18.64 20.16 21.82 23.66 25.67 27.89 30.3233.00 33.00 35.95 42.75 50.98 55.72 17 18.43 20.01 21.76 23.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 65.08 18 19.61 21.41 23.41 25.65 28.13 30.91 34.00 37.45 41.30 45.60 55.75 68.39 75.84 19 20.81 22.84 25.12 27.67 30.54 33.76 37.38 41.45 46.02 51.16 63.44 78.97 88.21 20 22.02 24.30 26.87 29.78 33.07 36.79 41.00 45.76 45.76 51.16 57.28 72.05 102.4 21 23.24 25.78 31.97 35.72 39.99 44.87 50.42 56.76 64.00 81.70 104.8 118.8 22 24.47 27.30 30.54 34.25 38.51 43.39 49.01 55.46 62.87 71.40 92.50 120.4 137.6 23 25.72 28.85 32.45 36.62 41.43 47.00 53.44 60.89 69.53 79.54 104.6 138.3 159.3 24 26.97 30.42 34.43 39.08 44.50 50.82 58.18 66.76 76.79 88.50 118,2 158.7 184.2 25 28.24 32.03 36.46 41.65 47.73 54.86 63.25 73.11 84.70 98.35 133.3 181.9 212.8 26 29.53 33.67 38.55 44.31 51.11 59.16 68.68 79.95 93.32 109.2 150.3 208.3 245.7 27 30.82 35.34 40.71 47.08 54.67 63.71 74.48 87.35 102.7 121.1 169.4 238.5 283.6 28 32.13 37.05 42.93 49.97 58.40 68.53 80.70 95.34 113.0 134.2 190.7 272.9 327.1 29 33.45 38.79 45.22 52.97 62.32 73.64 87.35 104.0 124.1 148.6 214.6 312.1 377.2 30 34.78 40.57 47.5856.08 66.44 | 79.06 66.44 79.06 94.46 113.3 136.3 164.5 241.3 356.8 434.7 40 48.89 60.40 75.40 95.03 120.8 154.8 199.6 | 259.1 337.9442.6767.1 1,342 | 1,779 50 64.46 84.58 112.8 152.7 209.3 209.3 290.3 406.5 573.8 815.1 1,164 2,400 4,995 7,218 91.02 28.68 Choose from any lis ? Print Done