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Reference Reference into a fairly risky investment fund that you expect will earn 12% per year. You will leave the money in this fund until
Reference Reference 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 70 years old. I (Click the icon to view Present Value of \$1 table.) (Click the icon to view Present Value of Ordinary Annuity of \$1 table.) I (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 $230,000 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: A. 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. D. None of the above Reference Requirements 1. How much money must you accumulate by retirement to make your plan work? (Hint: Find the present value of the $230,000 withdrawals.) 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? Reference
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