years old.

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:

B$.$ 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

Requirements

How much money must you accumulate by retirement to make your plan work? $($Hint: Find

the present value of the $$210,000$ withdrawals.$)$

How does this amount compare to the total amount you will withdraw from the investment

during retirement? How can these numbers be so different?