you are planning a very early retirement. You would like to retire at age 40 and have enough money saved to be able to draw $245,000 per year for the next 40 years based on family history you think you live to age 80. You plan to save retirement by making 15 equal annual installments (from age 25 to 40) into a fairly risky investment fund that you will expect to earn 14% per year. You will leave the money in this fund until it is completely depleted when you're 80 years old.

You will leavo the money in thit fund unte it in completoly deploted when you are 80 years old (Cick the icon to view the presert value ancuaty table) (Cick the iton to view the future value arnuity table.) (Click the icon to vew the present value table.) (Cick the icon to view the future value tacle.) To make your plan won answer the following quetsons (Cick the icon to view the quatione) 1. How much money must you accumulate by retirment? (Hent Find the present value of the 5245,000 whidrawals) Calculate the prosent value to find out how much money ment be accumblatod by retrement (flound your antwer to the nescett whole doliar,) The present yalie is More info 1. How much money must you accumulate by retirement? (Hint: Find the present value of the $245,000 withdrawals.) 2. How does this amount compare to the total amount you will draw out of the investment during retirement? How can these numbers be so different? 3. How much must you pay into the investment each year for the first fifteen years? (Hint Your answer from Requirement 1 becomes the future value of this annuity.) 4. How does the total out-of-pocket savings compare to the investment's value at the end of the 15-year savings period and the withdrawals you will make during retirement? 1. How much money wust you accumulate by retirement? (Hint: Find the present value of the $245,000 withdrawals.) Calculate the present value to find out how much money must be accumulated by retirement. (Round your answer to the nearest whole dollar.) The present value is