Present Value of Annuity of $1 Reference Reference Reference 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 $240,000 per year for the next 40 years (based on family history, you think youni live to age 80). You plan to save for retirement by making 20 equal anniul installments (trom age 20 to age 40 ) into a fairty 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 80 years cid. (Click the icon to view the present value annuity table.) (Cick the icon to view the future value annuity table.) (Click the icon to vien the present value table.) (Cick the icon to view the future value table.) To make your pian 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 $240,000 withdrawals.) Calculate the present value to find out how much money must be accumulated by retirement (Round your answer to the nearest whole doliar.) The present value is More info 1. How much money must you accumulate by retirement? (Hint Find the present value of the $240,000 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 dfferent? 3. How much must you pay into the invesiment each year for the first lwenty years? (Hint Your answer from Requirement 1 becomes the future value of this annuity.) 4. How does the total oul-of-pocket savings compare to the investment's value at the end of the 20-year savings period and the withdrawals you wil make during retirement