Problem 4 Time Value of Money 8 Points. Mr. and Mrs. Tom Petty are 32 years old and because of financially able Parents who will be paying for the college education for the grandchildren they are meeting with a financial planner to begin the long term savings process to fund financial flexibility at the age of 62. The financial planner asks how much the Petty's believe they'll need to withdraw each year over the 30 years they expect to be in this financial independence phase of life. The Petty's answer $100,000 annually. The financial planner advises that during the financial independence years (approximately 62 - 92 years) the Petty's should budget for an expected average annual compounded rate of return of 4%. During the investing years (the next 30) the financial planner believes that a 7% average annual compounded rate of return is reasonably attainable given the risk profile of the Petty's. (1) How much will the Petty's need at the end of the regular job / investing phase (the front end 30 years) just as they are beginning to start the financial flexibility phase (the back end 30 years). In other words, how big of a pile of dollars do they want to have so that they (under the conditions cited) can withdraw $100,000 annually for each of the back end 30 years. (2) The Petty's were paying off student loans so their savings and investment account started with zero dollars when they started this investment journey at age 32. How much will the Petty's need to invest at the end of each year for the next 30 years (the front end 30 years) so that they reach the amount that you calculated in