Question 3 with the blank has a drop down menu. The answer choices are ($210,000, the future value, the 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 withdraw $210,000 per year for the next 30 years (based on family history, you think you will live to age 70). You plan to save by making 20 equal annual installments (from age 20 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 Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements Requirement 1. How much money must you accumulate by retirement to make your plan work? (Hint. Find the present value of the $210,000 withdrawals.) (Round your final answer to the nearest whole dollar.) To make the plan work, you must accumulate this amount by retirement Requirement 2. How does this amount compare to the total amount you will withdraw from 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 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. OB. 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. OC. You need to have the same amount accumulated as you will withdraw because you will not earn further interest on your investment when you reach retirement OD. None of the above Reference x 7% Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.9090.893 0.877 0.870 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.7180.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.5520.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.3140.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.1980.146 0.108 0.093 0.080 0.060 0.045 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 Period 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 0.1990.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 Period 22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 Period 23 0.795 0.634 0.507 0.4060.3260.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 Period 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 0.1020.066 0.043 0.035 0.028 0.019 0.013 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.0160.010 Period 26 0.772 0.598 0.464 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.053 0.033 0.026 0.021 0.014 0.009 Period 27 0.764 0.586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.047 0.029 0.023 0.018 0.0110.007 Period 28 0.757 0.574 0.437 0.333 0.255 0.1960.150 0.116 0.090 0.069 0.042 0.026 0.020 0.0160.010 0.006 Period 29 0.749 0.563 0.424 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0.037 0.022 0.017 0.014 0.008 0.005 Period 30 07421 552 0412 Inang In 231 174 0 121 nga 0075 1057 n33 Innan 2015 1012 1 no 10004 Print Done 0 Reference -X 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% 4% 5% 6% 7% 8% 9% 10% 1.030 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.061 1.082 | 1.103 1.1241.145 1.166 1.1881.210 1.093 1.125 1.158 1.191 1.225 1.260 1.295 1.331 1.126 1.170 | 1.216 1.262 1.311 1.360 1.412 1.464 1.159 1.217 1.276 1.338 1.403 1.469 1.539 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 15% 1.140 1.150 1.300 1.323 1.482 1.521 1.689 1.749 1.925 2.011 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.265 | 1.340 1.419 1.501 1.587 1.677 1.772 1.230 1.316 1.407 1.5041.606 1.7141.828 1.949 1.267 1.369 1.477 1.594 1.718 1.851 1.993 2 144 1.305 1.423 1.551 1.689 1.838 1.999 2172 2.358 1.344 1.480 1.629 1.791 1.967 2 159 2.3672594 1.974 2.1952.313 2.211 2502 2.660 2.476 2.853 3.059 2.773 3.252 3.518 3.106 3.7074.046 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 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 Period 26 Period 27 Period 28 Period 29 Inarindan 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.3322.580 2.853 3.479 4.2264.652 1.127 1.268 1.426 1.601 1.796 | 2012 | 2.252 2.518 2.813 3.138 3.896 4.818 5.350 1.138 1.294 1.469 1.665 1.886 2.133 | 2.410 2.720 3.066 3.452 4.363 5.492 6.153 1.149 1.319 1.513 1.732 1.980 2.261 2.579 2.937 3.342 3.798 4.887 6.2617.076 1.161 1.346 1.558 1.801 | 2.079 2.3972.759 3.172 3.6424177 5.474 7.138 8.137 1.173 1.373 1.605 1.873 2.183 2.540 2.952 3.426 3.970 4.595 6.130 8.1379.358 1.184 1.400 1.653 1.948 2292 2.693 3.159 3.700 4.328 5.054 6.866 9.276 10.76 1.196 1.428 1.7022026 2407 2.854 3.380 3.996 4.717 5.560 7.690 10.58 12.38 1.208 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 8.613 12.06 14.23 1.220 1.486 1.806 2.191 2.653 3.2073.870 4.661 5.6046.727 9.646 13.74 16.37 1.232 1.516 1.860 2279 2.786 3.400 4.141 5.034 6.1097.400 10.80 15.67 18.82 1.245 1.546 1.916 2370 2.925 3.604 4.430 5.4376.659 8.140 12.10 17.86 21.64 1.257 1.577 1.9742465 3.072 | 3.820 4.741 5.871 | 7.258 8.954 13.55 20.36 24.89 1.270 1.608 2.033 2.563 3.225 4.049 5.072 6.341 7.911 9.850 15.18 23.21 28.63 1.282 1.641 2.094 2.666 3.386 4.2925.427 6.848 8.623 10.83 17.00 26.46 32.92 1.295 1.673 2.157 2.772 3.556 4.549 5.8077.396 9.399 11.92 19.04 30.1737.86 1.308 1.707 2.221 2.883 3.733 4.822 6.214 7.988 10.25 13.11 21.32 34.39 43.54 1.321 1.741 2.288 2.999 3.920 5.112 6.649 8.627 11.17 14.42 23.88 39.20 50.07 1.335 1.776 2.357 3.119 4.116 5.418 7.1149.317 12.17 15.86 26.75 44.69 57.58 1011 1220 16712 7612 1 10 OR 17.15 1.2.10 1207 5006 AA1 Print Done . Reference 6% 7% 8% 1.647 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 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 Period 26 Period 27 Period 28 Period 29 Period 20 Present Value of Ordinary Annuity of $1 1% 2% 3% 4% 5% 9% 10% 12% 14% 15% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 1.970 1.942 1.913 1.886 1.859 1.833 | 1.808 1.783 1.759 1.736 1.690 1.626 1.605 1.566 1.528 2.941 2884 2.829 2.775 2.723 2.673 2624 2.577 2.531 2.487 2.402 2.322 2.283 2 246 2.174 2.106 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 4.8534.713 4.580 4.452 4.329 4212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4 486 4355 4 111 3.889 3.784 3.685 3.498 3.326 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 4039 3.812 3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.6394.487 4.344 4.078 3.837 8.566 8.162 7.786 7.435 7.108 6.802 | 6.515 6.247 5.995 5.759 5.3284946 4.7724.607 4.303 4.031 9.471 8.983 8.530 8.111 7.722 7.360 | 7.024 6.710 6.418 6.145 5.650 5.216 5.019 4.833 4.4944 192 10.368 9.787 9.253 8.760 8.306 7.887 7.499 | 7.139 6.8056.495 5.938 5.453 5.234 5.029 4.656 4.327 11 255 10.575 9.954 9.385 8.863 8.384 79437.536 7.1616.814 6.1945.660 5.421 5.197 4.793 4.439 12. 134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 74877.103 6.424 5.8425.583 5.3424 9104.533 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.468 5.008 4.611 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 5.575 5.092 4.675 14.718 13.578 12.561 11.652 10.838 10.106 9447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.730 15.562 14.292 | 13.166 12.166 11.274 10.4771 9.763 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.775 16.398 14.992 | 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2017.250 6.4676.128 5.818 5.273 4.812 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.5506.198 5.877 5.3164.844 18.046 16.351 14.877 13.590 12.462 11.470 10.5949.818 9.129 8.514 7.4696.623 6.259 5.929 5.353 4.870 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.0179.292 8.6497.5626.687 6.312 5.973 5.384 4.891 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.2019.4428.7727.645 6.7436.3596.011 5.410 4.909 20.45618.292 16.444 14.857 13.489 12.303 11.272 10.371 9.5808.8837.718 6.792 6.399 6.044 5.432 4.925 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 6.434 6.073 5.451 4.937 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.8239.077 7.8436.873 6.464 6.097 5.467 4.948 22.795 20.12117.877 15.983 14.375 13.003 11.826 10.8109.929 9.161 7.8966.906 6.491 6.118 5.480 4.956 23.560 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7.943 6.9356.514 6.136 5.492 4.964 24.316 21.281 18.764 16.663 14.898 13.406 12.137 11.051 10.116 9.3077.984 6.9616.534 6.152 5.5024970 25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.1989.370 8.022 6.9836.551 6.166 5.510 4.975 125 808, 172 395 l 10 11 122 15 372113 765l 12 27 l 1253 Tin 274 427 8055 7003 6.566 6177 5517 4979 Print Done A Reference - 1% 7% 8% 9% 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 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 Period 26 Period 27 Period 28 Period 29 Period 30 Future Value of Ordinary Annuity of $1 2% 3% 4% 5% 6% 10% 12% 14% 15% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2030 2040 2050 2060 2.070 2.080 2.090 2.100 2.120 2.140 2.150 3.030 3.060 3.091 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.374 3.440 3.473 4.060 4.122 4.184 | 4.246 4.310 4.375 4.440 4.506 4.573 4.641 4.779 4.921 4.993 5.101 5.204 5.309 5.416 5.526 5.637 5.751 5.8675.985 6.105 6.353 6.610 6.742 6.152 6.308 6.468 6.633 6.802 6.975 7.1537.3367.523 7.7168.115 8.536 8.754 7.214 7.434 7.6627.898 8.142 8.394 8.654 8.9239.2009.487 10.09 10.73 11.07 8.286 8.583 | 8.892 | 9.214 9.549 9.897 10.260 10.64 | 11.03 11.44 12.30 13.23 13.73 9.369 9.755 10.16 10.58 | 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 10.46 10.95 11.46 12.01 | 12.58 13.18 13.82 14 49 15.1915.94 17.55 19.34 20.30 11.57 12.17 12.81 13.49 14 21 14.97 15.78 16.65 17.56 18.53 20.65 23.0424.35 12.68 13.41 14.19 15.03 15.92 16.87 17.8918.98 20.14 21.38 24 13 27.2729.00 13.81 14.68 15.62 16.63 17.71 18.88 20.14 21.50 22.95 24.52 28.03 32.09 34 35 14.95 15.97 17.09 | 18.29 | 19.60 21.02 22.55 24.21 26.02 27.98 32.39 37.58 40.50 16.10 17.29 18.60 20.02 21.58 23.28 25.13 27.15 29.36 | 31.77 37.28 43.84 47.58 17.26 18.64 20.16 21.82 | 23.66 25.67 27.89 30.32 33.00 35.95 42.75 50.98 55.72 18.43 20.01 | 21.76 23.70 | 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 65.08 19.61 21.41 23.41 25.65 | 28.13 30.91 34.00 37.4541.30 45.60 55.75 68.39 75.84 20.81 22.84 25.12 | 27.67 30.54 33.76 37 38 41.45 46.02 51.16 63.44 78.97 88.21 22.02 24.30 26.87 29.7833.07 36.79 41.00 45.76 51.16 57.28 72.05 91.02 102.4 23.24 25.7828.68 | 31.97 35.72 39.99 44.87 50.4256.76 64.00 81.70 104.8 118.8 24.47 27 30 30.5434.25 38.51 43.39 49.01 55.46 62.87 71.40 92.50 120.4 137.6 25.72 28.85 32.45 36.62 41.43 | 47.00 53.4460.89 69.53 79.54 104.6138.3 159.3 26.97 30.42 34.43 39.08 | 44.50 50.82 58.18 66.76 76.79 88.50 18.2158.7184.2 28.24 32.03 | 36.4641.65 47.73 54.86 63.25 73.11 84.70 | 98.35 133.3 181.9 212.8 29.53 33.67 38.55 44.3151.11 59.16 68.68 | 79.95 | 93.32 109.2 150.3 208.3245.7 30.82 35.3440.71 47.08 54.67 63.71 74.48 87.35 102.7 121.1 169.4 | 238.5 283.6 32.13 37.05 42.93 49.97 | 58.40 68.53 80.70 95.34 113.0 134.2 190.7 272.9 327.1 33.45 38.79 45.22 52.97 62.32 73.64 87.35 104.0 | 124.1 148.6 214.6 312.13772 3478 An 57 47 58 1 56.08 66 44 79.0 04 46 11331363 164 5 2413 3568 4247 Print Done