Please show work on how to calculate present value!

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 $230,000 per year for the next 30 years (based on family history, you think you'll 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 earn 14% 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 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: A (Click the icon to view the questions.) 1. How much money must you accumulate by retirement? (Hint Find the present value of the $230,000 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 $ However, by age 40 you only need to have invested 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 14% interest. OB. 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. O C. 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 14% interest. OD. None of the above. 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.) (Round your answer to the nearest whole dollar.) You must pay $ into the investment each year for the first ten years. 4. How does the total out-of-pocket savings compare to the investment's value at the end of the ten-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 $ This is far than the investment's worth at the end of ten years and remarkably than the amount of money you will eventually withdraw from the investment. Choose from any list or enter any number in the input fields and then continue to the next question. . X i Reference Periods 1 1% 0.990 1.970 3% 0.971 1.913 2% 0.980 1.942 2.884 3.808 4.713 18% 0.847 1.566 2 4% 0.962 1.886 2.775 3.630 4.452 Present Value of Annuity of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 1.859 1.833 1.783 1.736 2.723 2.673 2.577 2.487 3.546 3.465 3.312 3.170 4.329 4.212 3.993 3.791 14% 0.877 1.647 2.322 12% 0.893 1.690 2.402 3.037 3.605 16% 0.862 1.605 2.246 2.798 3.274 20% 0.833 1.528 2.106 2.589 2.991 3 2.941 2.829 2.174 4 3.902 4.853 3.717 4.580 2.914 3.433 2.690 3.127 5 6 5.601 5.417 5.242 5.076 4.917 4.623 4.111 3.889 7 5.795 6.728 7.652 8.566 6.472 7.325 8.162 8.983 8 9 10 6.230 7.020 7.786 8.530 6.002 6.733 7.435 8.111 5.786 6.463 7.108 7.722 5.582 6.210 6.802 5.206 5.747 6.247 6.710 4.355 4.868 5.335 5.759 6.145 4.564 4.968 5.328 5.650 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 9.471 7.360 4.192 4.327 11 12 7.139 7.536 4.656 4.793 4.439 10.368 9.787 9.253 8.760 8.306 7.887 11.255 10.575 9.954 9.385 8.863 8.384 12.134 | 11.348 10.635 | 9.986 9.394 8.853 13.004 | 12.106 | 11.296 | 10.563 9.899 9.295 13.865 12.849 11.938 11.118 10.380 9.712 13 6.495 6.814 7.103 7.367 7.606 5.453 5.660 5.842 6.002 5.938 6.194 6.424 6.628 6.811 5.029 5.197 5.342 5.468 5.575 7.904 8.244 8.559 4.910 4.533 14 15 5.008 4.611 4.675 6.142 5.092 5.353 4.870 20 25 30 40 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 22.023 19.52317.413 | 15.622 14.094 12.783 | 10.675 9.077 25.808 22.396 | 19.600 17.292 15.372 13.765 11.258 9.427 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 7.469 7.843 8.055 8.244 6.623 6.873 7.003 7.105 5.929 6.097 6.177 6.233 5.467 5.517 5.548 4.948 4.979 4.997 Print Done Reference - Present Value of $1 1% 2% 4% 8% 10% 18% 20% Periods 1 2 0.990 0.980 0.971 0.980 0.961 3% 0.971 0.943 0.915 0.888 0.863 0.847 0.718 0.962 0.925 0.889 0.855 5% 0.952 0.907 0.864 0.823 0.784 6% 0.943 0.890 0.840 0.792 0.747 0.909 0.826 0.751 0.683 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.926 0.857 0.794 0.735 0.681 16% 0.862 0.743 0.641 0.552 0.476 3 0.942 0.609 0.833 0.694 0.579 0.482 0.402 4 0.961 0.592 0.924 0.906 0.516 0.437 5 0.951 0.822 0.621 0.519 6 0.888 7 0.871 8 0.942 0.933 0.923 0.914 0.905 0.853 0.837 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.630 0.583 0.540 0.500 0.463 0.564 0.513 0.467 0.424 0.386 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 0.270 0.410 0.354 0.305 0.263 0.227 0.370 0.314 0.266 0.225 0.191 0.335 0.279 0.233 0.194 0.162 9 10 0.820 0.350 0.135 11 12 13 14 15 0.237 0.208 0.896 0.887 0.879 0.870 0.861 0.804 0.788 0.773 0.758 0.743 0.722 0.701 0.681 0.661 0.642 0.650 0.625 0.601 0.577 0.555 0.585 0.557 0.530 0.505 0.527 0.497 0.469 0.442 0.417 0.429 0.397 0.368 0.340 0.315 0.287 0.257 0.229 0.319 0.290 0.263 0.182 0.195 0.168 0.145 0.125 0.108 0.162 0.137 0.116 0.099 0.084 0.112 0.093 0.078 0.065 0.205 0.160 0.140 0.481 0.239 0.183 0.673 20 25 0.820 0.780 0.742 0.554 0.478 0.412 0.456 0.375 0.308 0.104 0.059 0.073 0.038 0.610 0.037 0.016 0.026 0.010 0.377 0.295 0.231 0.142 0.312 0.233 0.174 0.097 0.215 0.146 0.099 0.046 0.051 0.024 0.012 0.149 0.092 0.057 0.022 30 0.033 0.020 0.007 0.004 0.552 0.453 40 0.672 0.307 0.208 0.011 0.005 0.003 0.001 0.001 Print Done X Reference Future Value of $1 Periods 1% 2% 4% 5% 10% 12% 14% 16% 1 1.050 1.100 1.120 1.140 1.040 1.082 1.010 1.020 1.030 1.041 1.051 2 3 4 5 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 6% 1.060 1.124 1.191 1.262 1.338 1.103 1.158 1.216 8% 1.080 1.166 1.260 1.360 1.469 1.125 1.210 1.331 1.464 1.254 1.405 1.574 1.762 1.300 1.482 1.689 1.925 18% 1.180 1.392 1.643 1.939 2.288 1.160 1.346 1.561 1.811 2.100 20% 1.200 1.440 1.728 2.074 2.488 1.170 1.217 1.276 1.611 6 7 1.194 1.230 2.195 2.502 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.265 1.316 1.369 1.423 1.340 1.407 1.477 8 1.587 1.714 1.851 1.999 1.419 1.504 1.594 1.689 1.791 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 1.267 1.305 1.344 2.986 3.583 4.300 5.160 2.853 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 5.234 1.551 9 10 3.252 1.480 1.629 2.159 3.707 6.192 4.226 5.117 11 12 13 1.116 1.127 1.138 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 4.818 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.898 2.012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 2.853 3.138 3.452 3.797 4.177 3.479 3.896 4.363 7.430 8.916 10.699 6.176 7.288 8.599 10.147 11.974 5.936 6.886 7.988 9.266 14 1.149 5.492 6.261 7.138 1.980 4.887 12.839 15 1.161 2.079 5.474 15.407 20 25 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2.653 3.386 4.322 7.040 3.207 4.292 5.743 10.286 4.661 6.727 6.848 10.835 10.063 17.449 21.725 45.259 9.646 17.000 29.960 93.051 13.743 26.462 50.950 188.884 19.461 40.874 85.850 27.393 38.338 62.669 95.396 143.371 237.376 750.378 1,469.772 30 40 378.721 Print Done