please help

Options for 2

$245,000

the future value

the present value

Options for 4

Less/mores

Higher/lower

You are planning for a very early retirement. You would like to retire atinge 40 and have enough money saved to be able to drow $245,000 per year for the next 30 years based on family history, you think yoll live to age 70). You plan to save for retirement by making 10 equal annual installments (from age 30 to age 40) into a fairly risky investment fund that you expect will eam 14% per yent. You will leave the money in this fund until it is completely depleted when you are 70 years old Click the icon to view the present value annuity table.) (Click the icon to view the future value annuity table.) (Click the icon to view the present value table) Click the icon to view the future value table.) To make your plan work answer the following questions Click the icon to view the questions.) 1. How much money must you acumulate by retirement? (HintFind the present value of the $245.000 withdrawals) Calculate the present value to find out how much money must be accumulated by retirement, (Round your answer to the nearest whole ola The present values 2. How does this amount compare to the total amount you wil draw out of 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 accumulated as you will withdraw because you will not eam further interest on your investment when you reach retirement B. You need to have far more accumulated than what you will withdraw because you will withdraw a large portion of the investment every year the balance remains invested where it continues to earn 14% interest OC. You need to have far less accumulated than what you will window because you only withdraw a portion of the investment every year the balance remains invested where it continues to earn 14% interest D. None of the above. 3. How much munt you pay into the investment each year for the first ten years? (Hint Your answer from Requirement 1 becomes the future value of this annuity) (Round your answer to the nearest whole dollar) For the frut ten years, the amount you must pay into the Investment each year is 4. How does the total out-of-pocket saving compare to the investment's value at the end of the 10-year savings period and the withdrawals you will make during retirement (Use the Investment rounded to the nearest whole number that you calculated above, then round your final nuwer to the nearest whole dollar) The total out-of-pocket savings amounts to This is for than the investment's worth at the end of ten years and remarkably V than the amount of money you will eventually withdraw from the investment - X eference Reference Prenerale Periode IN 25 ON 45 ON 0% 125 14% 105 10 % 0097150670838 Pred 2 0 0 0 0 0.025 0.0 0.0 0.467 0.28 0.7070 0745071001 Preds 0971012 001500064 0.140 070711 0.7120670610.000 0.87 Perid 4 01 OM ONS 019 0.78 0.75000 M0.20 052 0546 0.42 Predo D 0.00 0.3636.622 714 OM 006210M 01 000 0437 0.40 Periode 20.0637 0790 0.746 0.705 06:30 0.504.SO 04660410 0.370 0.336 Period 7 0.000 0.71 0.15 0.760 711 0.665 0.589 0.55 0.40 0.400 0.354 0.3140.270 Period: 0.23 0.853 70.73 0.677 0.27 0.540 040404 05 0.30 0.20 0.233 Perle 0914047 0.700.703 0645 582 0.500 0.424036 0.6 0.26 0225 0.114 Pred 100.6 0.820 074067 0.61405660465 0.386 0.22 0.2700227 0.19 0.162 Period 11 08 0.804 0.722 0.4 0.6 0.27 0.429 0.3500 217 0.237 0.19 0.162 0.195 Period ONT 0788 0.70 0.625 0.557 0.497 0.397 03190257 0.20 0.16 0.137 0.112 Period 130.67 0773 0681 050 0510 0.469 0.368 02800.229 0.19 0.145 0.15 0.09 Period 140.700.750 0661 0.577 0.06 0.442 0.40 0.25% 0.205 0.10 0.125 0.09 0.078 Period 16 0.16 0.7490542 0565 0.411 0.4170315 0.23901830.540 0.108084 0.065 Period 200.820 0.673 0554 0456 0.377 0.312 0.215 0.1490104 0.07 0.05 0.067 0.026 Period 25 0.780 0.610 0.78 0.375 0.25 0.23 0.14 0.0020 050 0.035 0.024 0.0100050 od 30 0.742 0.552 0412 0.30 0.231 0.174 0.00 0.05 0.033 0.0200.012 0.007 0.004 Period 400572 0.453 0.30 0.200 0.142 0.097 0.046 0.022 0.01 0.005 0.0050001 0001 Present Value Annully 1 Perlede 95 35 4% 10 185 18 20 Period: 37OMO CONTO 063 Period 1.12 1913 1912 1911 GT 1805 180 1624 P2M12.02.12 2.77 2.72 2073 2571 147 2.401 2021 2.0 2014 2100 Pull 411023101 370 3.60 3.50 3.40 3312 1.170 300242.2000 Periods 4471340442 4320 421233.71 3.0 343 324 32001 Period 5.661 8417.242.0764917 46234355 4.111 33 34 3336 Period 6.728 647262306.002.78 5.12.2004 4 4 40 41 Period 77702067504036.21061473446 44 4070 30 Period 566167774357.100.1026.247.50.32149464744091 Period 10 0411101112m 70 T6.145 62164 44344192 Period 110.368678702538760.07.19964055.4538.00 4321 Period 12 1125 10.578.94.1384754 4.1345.91 4N) 44 Period 131213411.390 10.635.3 85 7.7.10 6.404542 5.2 4910 4533 Period 143.004 12 100 1120010565205244737 662 8002 5. 6.00 4511 Period 15. 12.00 11.00 11.116.30 0.7126.55 7.800.46.125.57 3.024.675 Period 2018.046.3511487113.50 12.462 11.470989 2:514746205096363 & TO Period 25 22.003 19.52317A13151221401278310674 BOTT76.73 6.007 457 454 Period 3020 22.30.000 17.252.722.765 11.250 427 6.056 TO 6.1775517 4.99 Period 40 12835 27 358 23.110 1.717,159 15.046 11.825.72963447.1016230 5.54 4 Print Done Print Done More info 1. How much money must you accumulate by retirement? (Hint: Find the present value of the $245,000 withdrawals.) 2. How does this amount compare to the total amount you will draw out of the investment during retirement? How can these numbers be so different? 3. How much must you pay into the investment each year for the first ten years? (Hint Your answer from Requirement 1 becomes the future value of this annuity.) 4. How does the total out-of-pocket savings compare to the investment's value at the end of the 10-year savings period and the withdrawals you will make during retirement? Print Dono Reference Future Value of $1 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 5% 1.050 1.103 1.158 1.216 1.276 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 1.062 1.072 1.083 1.094 1.105 1.340 1.407 1.477 1.551 1.629 1.126 1.149 1.172 1.195 1.219 1.243 1.268 1.294 1.319 1.346 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 1.539 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4.801 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 1.806 2.094 2.427 3.262 6% 8% 10% 12% 14% 16% 18% 20% 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1,200 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 1.594 1.851 2.144 2476 2 853 3.278 3.759 4.300 1.689 1.999 2358 2.773 3.252 3.803 4.435 5.160 1.791 2.159 2 594 3.106 3.707 4.411 5.234 6.192 1.898 2.332 2853 3.479 4.226 5.117 6.176 7.430 2012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10 699 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12839 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95 396 5.743 10.06317.449 29.960 50.950 85.850 143.371 237.376 10 286 21.725 45.259 93.051 188.884 378.721750.378 1,469.772 1.116 1.127 1.138 1.149 1.161 1.710 1.796 1.886 1.980 2.079 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 2.653 3.386 4.322 7.040