Suppose that Shen is 35 years old and has no retirement savings. He wants to begin saving for retirement, with the first payment coming one year from now. He can save $30,000 per year and will invest that amount in the stock market, where it is expected to yield an average annual return of 12.00% return. Assume that this rate will be constant for the rest of hiss life. In short, this scenario fits all the criteria of an ordinary annuity. Shen would like to calculate how much money he will have at age 65. Use the following table to indicate which values you should enter on your financial calculator. For example, if you are using the value of 1 for N, use the selection list above N in the table to select that value. Input 30 12.00% 0 -$30,000 Keystroke N I/Y PV PMT FV Output ? Using a financial calculator yields a future value of this ordinary annuity to be approximately _______________ at age 65. Shen would now like to calculate how much money he will have at age 70. Use the following table to indicate which values you should enter on your financial calculator. For example, if you are using the value of 1 for N, use the selection list above N in the table to select that value. Input 35 12.00% 0 -$30,000 Keystroke N I/Y PV PMT FV Output ? Using a financial calculator yields a future value of this ordinary annuity to be approximately __________ at age 70. Shen expects to live for another 25 years if he retires at age 65, with the same expected percent return on investments in the stock market. He would like to calculate how much he can withdraw_________ at the end of each year after retirement. Use the following table to indicate which values you should enter on your financial calculator in order to solve for PMT in this scenario. For example, if you are using the value of 1 for N, use the selection list above N in the table to select that value. Input Amount saved for retirement by age 65 0 Keystroke N I/Y PV PMT FV Output ? Using a financial calculator, you can calculate that Shen can withdraw ________ at the end of each year after retirement (assuming retirement at age 65), assuming a fixed withdrawal each year and $0 remaining at the end of his life. Shen expects to live for another 20 years if he retires at age 70, with the same expected percent return on investments in the stock market. Use the following table to indicate which values you should enter on your financial calculator. For example, if you are using the value of 1 for N, use the selection list above N in the table to select that value. Input Amount saved for retirement by age 70 0 Keystroke N I/Y PV PMT FV Output ? Using a financial calculator, you can calculate that Shen can withdraw _________ at the end of each year after retirement at age 70, assuming a fixed withdrawal each year and $0 remaining at the end of his life. Step 3: Practice: Future Value of an Annuity Now its time for you to practice what youve learned. Suppose that Shen is 35 years old and has no retirement savings. He wants to begin saving for retirement, with the first payment coming one year from now. He can save $12,000 per year and will invest that amount in the stock market, where it is expected to yield an average annual return of 15.00% return. Assume that this rate will be constant for the rest of hiss life. Shen would like to calculate how much money he will have at age 65. Using a financial calculator yields a future value of this ordinary annuity to be approximately _____ at age 65. Shen would now like to calculate how much money he will have at age 70. Using a financial calculator yields a future value of this ordinary annuity to be approximately ________ at age 70. Shen expects to live for another 25 years if he retires at age 65, with the same expected percent return on investments in the stock market. Using a financial calculator, you can calculate that Shen can withdraw_________ at the end of each year after retirement (assuming retirement at age 65), assuming a fixed withdrawal each year and $0 remaining at the end of his life. Shen expects to live for another 20 years if he retires at age 70, with the same expected percent return on investments in the stock market. Using a financial calculator, you can calculate that Shen can withdraw ___________ at the end of each year after retirement at age 70, assuming a fixed withdrawal each year and $0 remaining at the end of his life.