If you are a student, you will probably not retire for many years. Your retirement income, then, is an annuity that wont begin until you retire. You are 22 years old and you would like to retire in 40 years. You would like (plan) to receive $15,000 at the END of each month of 30 years in retirement (you assume you will die with 92). Assume you have saved $50,000 and you can invest your money today at 8% until retirement and further assume that you will earn 4% during retirement. Show the timeline and all necessary calculations (formulas or input values to your calculator [PV, FV, PMT, N, I)! a) Draw a timeline and include all relevant variables b) How much money do you need at the point of retirement so you can enjoy $15,000 and the end of each month for the next 30 years? Assume a 4%, monthly compounding! c) How much money would you need to invest each month to reach your goal at retirement? 1) Assume a 8%, monthly compounding! d) Assume a 8%, annual compounding (Compounding and payment period dont match)

*PLEASE WRITE OUT THE WORK- NO EXCEL!!*