please no excel formula's as i don't have excel and i won't be able to use that on the final anyway. thanks!

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 draw $255,000 per year for the next 40 years (based on family history, you think you'll live to age 80). You plan to save for retirement by making 15 equal annual installments (from age 25 to age 40) into a fairly risky investment fund that you expect will earn 12% per year. You will leave the money in this fund until it is completely depleted when you are 80 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 future value table.) (Click the icon to view the present value table.) To make your plan work answer the following questions (Click the icon to view the questions.) 1. How much money must you accumulate by retirement? (Hint: Find the present value of the $255,000 withdrawals.) Calculate the present value to find out how much money must be accumulated by retirement. (Round your answer to the nearest whole dollar.) The present value is $ 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? Over the course of your retirement you will be withdrawing 10.200,000. However, by age 40 you only need to have invested 2,102,220 the present value These numbers are different because 0 A. 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 O B. You need to have the same accumulated as you will withdraw because you will not earn further interest on your investment when you reach retirement. it continues to earn 12% interest. C. You need to have far less accumulated than what you will withdraw because you only withdraw a portion of the investment every year-the balance remains invested where it O D. None of the above 3. How much must you pay into the investment each year for the first fifteen years? (Hint: Your answer from Requirement 1 becomes the future value of this annuity.) (Round your answer continues to earn 12% interest. to the nearest whole dollar.) You must pay $ into the investment each year for the first fifteen years 4. How does the total out-of-pocket savings compare to the investment's value at the end of the fifteen-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 answer to the nearest whole dollar.) The total out-of-pocket savings amounts to S of fifteen years and remarkably lowerthan the amount of money you will eventually withdraw from the investment. This is far less than the investment's worth at the end Reference 1 Present Value of Annuity of $1 Periods | 196 8% 10% 12%14%16%18%20% 0.990 0.9800.971 0.962 0.952 0.943 0.926 0.909 0.893 0.8770.8620.8470.833 1.9701.9421.913 1.886 1.859 1.833 1.783 1.736 1.6901.6471.605 1.566 1.528 2.941 2.8842.8292.7752.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 3.902 3.808 3.7173.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 4.853 4.7134.580 4.452 4.329 4.212 3.993 3.7913.605 3.433 3.274 3.1272.991 396 5% 2% 496 696 2 4 5.7955.6015.4175.242 5.076 4.9174.623 4.355 4.111 3.8893.6853.498 3.326 7 6.7286.472 6.230 6.002 5.7865.5825.2064.868 4.564 4.288 4.039 3.812 | 3.605 8 7.6527.325 7.020 6.733 6.4636.2105.7475.3354.968 4.639 4.344 4.078 3.837 8.566 8.1627.7867.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 10 9.4718.9838.5308.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.4944.192 11 10.368 9.7879.2538.760 8.3067.887 7.139 6.495 5.938 5.453 5.029 4.6564.327 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.1945.6605.1974.793 4.439 13 12.134 11.348 10.6359.9869.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 14 13.004 12.106 11.29610.563 9.8999.295 8.244 7.3676.628 6.002 5.468 5.008 4.611 15 13.865 12.849 11.938| 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.0924.675 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.3534.870 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.8436.8736.0975.467 4.948 30 25.808 22.396 19.60017.292 15.372 13.765 11.258 9.427 8.055 7.003 6.1775.517 4.979 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.2335.548 4.997 Print one Reterence Present Value of $1 Periods l 8% 10% 12%14%16% 18% 20% 0.990 0.9800.971 0.962 0.952 0.943 0.926 0.909 0.893 0.8770.8620.847 0.833 2 0.980 0.961 0.9430.925 0.907 0.890 0.857 0.826 0.7970.769 0.743 0.7180.694 0.971 0.9420.9150.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 4 0.961 0.924 0.888 0.8550.8230.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.951 0.906 0.8630.8220.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 2% 39% 4% 5% 69% 1% 6 0.942 0.8880.8370.790 0.746 0.705 0.630 0.564 0.507 0.456 0.4100.3700.335 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 8 0.923 0.853 0.789 0.7310.6770.6270.5400.4670.404 0.351 0.305 0.266 0.233 0.914 0.8370.766 0.703 0.6450.592 0.500 0.424 0.361 0.3080.2630.225 0.194 10 0.905 0.8200.7440.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 11 0.896 0.804 0.722 0.650 0.585 0.5270.4290.350 0.287 0.237 0.195 0.162 0.135 12 0.887 | 0.7880.7010.625 0.557 0.497 0.397 0.319 0.257 0.208 0.1680.1370.112 13 0.879 0.7730.6810.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 14 0.870 0.758 0.6610.5770.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 15 0.861 0.743 0.6420.5550.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 20 0.820 | 0.6730.5540.456 0.3770.312 0.215 0.149 0.104 0.073 0.051 0.0370.026 25 0.780 | 0.6100.4780.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 30 0.742 0.552 0.4120.3080.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 40 0.672 0.4530.3070.208 0.142 0.097 0.046 0.022 0.0110.005 0.003 0.001 0.001 8 2 2 11122 23456 78111 89 23 74 39 39 66 3 3 742 125 3345 11 26 4 31 76 2 581 482 2 4 19 1 1 1 1 2 22334 55679 19 40 85 32 2 2 2842 2233 44567 542 4163 76 717 57 92 1 483 23 33445 9 7599 2 I 29 3827 535 3 12346 135 814 178 2333 741 9 9 28072- 2 5 1234 1 35 412 317 723 69 094 2272 2 6 %|50517 8 8 01122 3 456 7 90 633 3 7 5693 91521 I 12 2334 01369 075 2 2 6938 2 69259 3 2479-4 11-12 96 6118 2 2 00011 123 223 5 67891 02 34 no 1 12345 20 25 30 40 12345 6789