Question
You are planning for a very early retirement. You would like to retire at age 40 and have enough money saved to be able to
You are planning for a very early retirement. You would like to retire at age 40 and have enough money saved to be able to withdraw $ 225 comma 000$225,000 per year for the next 3030 years (based on family history, you think you'll live to age 7070). You plan to save by making 1010 equal annual installments (from age 3030 to age 40) into a fairly risky investment fund that you expect will earn 1414% per year. You will leave the money in this fund until it is completely depleted when you are 7070 years old. LOADING... (Click the icon to view the Present Value of $1 table.) LOADING... ( Click the icon to view the Present Value of Annuity of $1 table.) LOADING... (Click the icon to view the Future Value of $1 table.) LOADING... (Click the icon to view the Future Value of Annuity of $1 table.) Read the requirements LOADING... . Requirement 1. How much money must you accumulate by retirement to make your plan work? (Hint: Find the present value of the $ 225 comma 000$225,000 withdrawals.) (Round your final answer to the nearest whole dollar.) To make the plan work, you must accumulate $ nothing by retirement.
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