Please help me check
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 20 equal annual installments (from age 20 to age 40) into a fairly risky investment fund that you expect will earn 8% 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 this amount by retirement 2477200 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? 6600000 Over the course of your retirement you will be withdrawing However, by age 40 you only need to have invested the future value These numbers are different because: O A. 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 8% interest. B. 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 8% interest. O C. 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. OD. None of the above er 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? 6600000 Over the course of your retirement you will be withdrawing However, by age 40 you only need to have invested the future value These numbers are different because: A. You need to have far more accumulated than what you will wit invested where it continues to earn 8% interest. $220,000 raw a large portion of the investment every yearthe balance remains n B. You need to have far less accumulated than what you will with the future value invested where it continues to earn 8% interest. aw a portion of the investment every yearthe balance remains C. You need to have the same amount accumulated as you will n the present value earn further interest on your tment when you reach retirement. D. None of the above
