Table of Future Value Annuity Factors Year 2% 5% 8% 1 1.000 1,000 1.000 5 5.204 5.526 5.867 10 10.950 12.578 14.487 40 60.401 120.797 259.052 10% 1.000 6.105 15.937 442.580 If he invests the $10,000 today, the terminal value of this initial investment in 40 years (earning an average 10% return) will be s This means that he must accumulate the remaining s through his annual savings plan to obtain the full $600,000. Still assuming an average return on investment of 10%, the additional yearly investment required to reach Ralph's targeted financal goal within 40 years Suppose instead that Ralph had no capital saved and thus needed to accumulate the entire $600,000 in the next 40 years. In this case, his annual contribution would have to be When Ralph starts with an initial investment of $10,000, the total amount that he ends up contributing to accumulate $600,000 is equal to the initial investment plus the additional yearly payments, for a total of When he starts with no initial capital contribution, the amount he ends up contributing is equal to the sum of all annual contributions you calculated in the no-initial-capital scenario, for a total of