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James Incorporation wishes to accumulate funds to provide a retirement annuity for its CEO, Ms. Rachel Green. Ms. Rachel by contract will retire at the

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James Incorporation wishes to accumulate funds to provide a retirement annuity for its CEO, Ms. Rachel Green. Ms. Rachel by contract will retire at the end of exactly 10 years. Upon retirement, she is entitled to receive an annual end-of-year payment of $40,000 for exactly 15 years. If she dies prior to the end of the 15-year period, the annual payments will pass to her family. During the 10-year "accumulation period" James Incorporation wishes to fund the annuity by making equal annual end-of-year deposits into an account earning 9% interest. Once the 15-year distribution period" begins, James Incorporation plans to move the accumulated monies into an account earning a guaranteed 12% per year. At the end of the distribution period, the account balance will equal zero. Note that the first deposit will be made at the end of year 1 and that the first distribution payment will be received at the end of year 11. A. How large a sum must James Incorporation accumulate by the end of year 10 to provide the 15-year, S40,000 annuity? B. How large must James Incorporation's equal annual end-of-year deposits into the account be over the 10-year "accumulation period" to fully fund Ms. Rachel's retirement annuity? C. How much James Incorporation would have to deposit annually during the accumulation period" if it could earn 10% rather than 9% during the accumulation period? D. How much James incorporation would have to deposit annually during the accumulation period if Ms. Rachel's retirement annuity were a perpetuity and all other terms were the same as initially described

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