Imagine you are a financial advisor to Valerie VanNess. Ms$.$ VanNess wants to retire in $25$ years.

She wants to start saving an annual amount at the end of each year until she retires. She expects

to live for another $20$ years after she retires. During retirement she wants to withdraw $$15,000$ at

the start of each year from a savings account. She can earn $10\%$ per year on balances in this

savings account.

Please look up the meaning of an "annuity due".

Write out the formula that calculates the PV of regular annuity.

If you use the PV annuity formula, at what time$/$year is the PV placea!

Write out the formula that calculates the FV of a regular annuity:

When the FV is calculated, in what year is the FV placed?

Draw a timeline that clearly labels:

a$)$ Now

b$)$ The date Ms$.$ VanNess will retire.

c$)$ The date Ms VanNess will stop withdrawing from the savings account.

d$)$ The yearly amounts she will withdraw $($you do not need to draw the total number of

withdrawals, but can indicate it somehow$).$

What is the Present Value of the withdrawals $($that occur at the start of each year$)$ that

Ms$.$VanNess plans to make while she is retired?

Show all work