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 $210.000 per year for the next 30 years (based on family history, you think you will live to age 701 plan to save by making 10 equal annual installments (from age 30 to age 40) into a fairly risky investment fund that you expect will eam 12% per year. You will leave the money in this fund until it is completly depleted when you are 70 years old. (Click the icon to view Present Value of Ordinary Annuity of $1 table) (Click the icon to view Present Value of $1 table) (Click the icon to view Future Value of $1 table) Read the requirements (Click the icon to view Future Value of Ordinary Annuity of $1 table) Requirement 1. How much money must you accumulate by retirement to make your plan work? (Hint Find the present value of the $210,000 withdrawals) (Round your final answer to the nearest who do To make the plan work, you must accumulate this amount try 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 diferent 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 OA. You need to have far less accumulated than what you will withdraw because you only withdraw a portion of the investment every year-the balance remains invested where it continues to eam 12% m OB. You need to have far more accumulated than what you will withdraw because you will withdraw a large portion of the investment every year-the balance remains invested where it continues to a 12% t OC. You need to have the same amount accumulated as you will withdraw because you will not eam further interest on your investment when you achet OD. None of the above planning for a very early ret ave by making 10 equal anr k the icon to view Present V & the icon to view Future Va requirements Reference ament 1. How much money e the plan work, you must ac ement 2. How does this amo Period 9 Period 10 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 Period 12 The course of your retiremen wer, by age 40 you only need numbers are different becaus You need to have far less ac You need to have far more a You need to have the same None of the above Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.094 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 Period 4 0.961 0.924 0.688 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.562 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0437 0.402 Period 6 0.942 0.888 0.897 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.233 0.914 0.837 0.766 0.703 0.645 0.502 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.253 0.225 0.194 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.003 0.071 0.054 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0026 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 Period 21 0811 0.660 0.538 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.003 0.064 0.053 0.044 0.001 0.022 Period 22 0.803 0.647 0.522 0422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 Period 23 0.795 0.634 0.507 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0022 0.015 Period 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.066 0.043 0.035 0.028 0.019 0.013 0.184 0.145 0.116 0.092 0.069 0.038 0.030 0.024 0.010 0.010 Period 25 0.780 0.610 0.478 0.375 0.295 0.233. - X history, you think you will live it is completely depleted m narest whole dollar) os to eam 12% interest ontinues to eam 12% interest Print Done ining for a very early retirement. by making 10 equal annual insta Reference he icon to view Present Value of S Future Value of $1 - X on family history, you think you will live tow s fund until it is completely depleted when he icon to view Future Value of $1 quirements. int 1. How much money must you e plan work, you must accumulate ant 2. How does this amount comp course of your retirement you wi by age 40 you only need to have mbers are different because: u need to have far less accumulate u need to have far more accumulat Periods Period 1 Period 21 Period 3 Period 4 Period 5 Period 6 1% 1.041 1.051 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.010 1.020 1.000 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.120 1.140 1.150 1.020 1.040 1.061 1.082 1.103 1.124 1.145 1.166 1.188 1.210 1.254 1300 1.323 1.030 1.061 1.093 1.125 1.158 1.191 1225 1.260 1.295 1.331 1.405 1.482 1.521 1.062 1.126 1.170 1.216 1.262 1311 1.360 1.412 1.464 1.574 1.689 1.749 1.104 1.159 1.217 1.276 1.338 1.403 1.469 1.539 1.611 1.762 1.925 2011 1,062 1.126 1.194 1.265 1.340 1419 1501 1.587 1.677 1.772 1.974 2.195 2.313 Period 7 1.072 1.149 1.230 1.316 1.407 104 1.606 1.714 1.828 1.949 2211 2.502 2.660 Period B 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1851 1993 2.144 2476 2.853 3.059 Period 9 1.094 1.195 1.306 1.423 1551 1.689 1.838 1.999 2.172 2.358 2.773 3.252 3.518 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 1.967 2.159 2.367 2.504 3.106 3.707 4.046 Period 11 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.479 4.226 4.652 Period 12 1.127 1.268 1.426 1.601 1.796 2012 2.252 2518 2813 3.138 3.896 4.818 5.350 Period 13 1.138 1.294 1.469 1.665 1.886 2.133 2.410 2.720 3.066 3.452 4.363 5.492 6.153 Period 14 1.149 1.319 1.513 1.732 1.900 2.261 2.579 2.937 3.342 3.798 4887 6.261 7.076 Period 15 1.161 1.346 1.558 1.801 2.079 2.307 2.759 3.172 3.642 4.177 5474 7.138 8.137 Period 16 1.173 1.373 1.605 1.873 2.183 2.540 2962 3.426 3.970 4.595 6.130 8.137 9.358 Period 17 1.184 1.400 1.653 1.948 2.292 2.093 3.159 3.700 4.328 5.054 6.866 9.276 10.76 Period 18 1.196 1428 1.702 2.026 2.407 2.854 3.380 3.996 4.717 5.560 7.600 10.58 12.38 Period 19 1208 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 8.613 12.06 14.23 Period 20 1.220 1.486 1.806 2.191 2.653 3.207 3.870 4.661 5.604 6.727 9.646 13.74 16.37 1.232 1516 1.860 2.279 2.766 3.400 4.141 5.034 6.109 7.400 10.80 15.67 18.821 1.546 1.916 2.370 2.925 3.604 4430 5.437 6.659 8.140 12.10 17.30 21.64 1.257 1.577 1974 2.465 3.072 3.820 4.741 5871 7.258 8.954 13.55 20.36 24.89 1.270 1.608 2.033 2.563 3.225 4.049 5.072 6.341 7.911 9.850 15.18 23.21 28.63 1.282 1.641 2.094 2.666 3386 4.292 5.427 6848 8.623 10.83 u need to have the same amount a One of the above Period 21 Period 22 Period 23 Period 24 Period 25 1.245 17.00 26.46 32.92 r to the nearest whole dollar) it continues to eam 12% interest. here it continues to eam 12% interest Done X I mning for a very early reti Reference by making 10 equal and history, you think you til it is completely dep me icon to view Present V Present Value of Ordinary Annuity of $1 the icon to view Future Va Periods 1% Period 1 0.990 2% 3% 0.980 0.971 equirements. Period 2 1.970 Period 3 2.941 1.942 1.913 2.884 2.829 Period 4 3.902 3.808 3.717 Period 5 4.853 4.713 4.580 4% 0.962 1.586 2.775 3.630 4.452 5% 6% 7% 8% 9% 10% 12% 15% 14% 16% 18% 20% Period 6 5.795 5.601 5.417 ent 1. How much money r Period 7 Period 8 The plan work, you must ac Period 9 Period 10 ment 2. How does this amo Period 11 5.242 6.002 6.733 7.435 8.111 8.760 course of your retiremen , by age 40 you only need umbers are different becaus ou need to have far less ac ou need to have far more a "You need to have the same s None of the above 6.728 6.472 6.230 7.652 7.325 7.020 8.566 8.162 7.786 9.471 8.983 8.530 10.368 9.787 9.253 Period 12 11.255 10.575 9.954 Period 13 12.134 11.348 10.635 Period 14 13.004 12 106 11.296 Period 15 13.865 12.849 11.938 Period 16 14.718 13.578 12.561 11.662 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.730 Period 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4775 Period 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 6.128 5.818 5.273 4.812 Period 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 6.190 5.877 5.316 4.844 Period 20 18.046 16.351 14.877 13.500 12.462 11.470 10.594 9.818 9.129 8.514 7.4690 6.623 6.259 5.929 5.353 4.870 Period 21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 6.312 5.973 5.384 4.891 5410 4.909 Period 22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.743 6.359 6.011 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883 7.718 6.792 6.399 6.044 5432 4.925 21.243 18.914 16.936 15.247 13.799 12.550 11.409 10.529 9.707 8.985 7.784 6.835 6.434 6.073 5.451 4.937 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.543 6.873 6.464 6097 5467 4945 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4.327 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.421 5.197 4.793 4.439 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5.583 5.342 4.910 4.533 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.468 5.008 4.611 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.547 5.575 5.092 4.675 Period 23 Period 24 Period 25 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 1.605 1.566 1.528 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246 2.174 2.106 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.605 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.837 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.031 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 5.019 4.833 4.494 4.192 earest whole dollar) es to earn 12% interest ontinues to eam 12% int You are planning for is very early retirement. You would like to retire at age 40 and have enough money saved to be able to withdraw $210,000 per year for the next 30 years (based on family history you think you will live to age 701 You plan to save by making 10 equal annual installments (from age 30 to age 40) into a fairly risky investment fund that you expect will eam 12% per year. You will leave the money in this fund until it is completely depleted when you are 70 years old. (Click the icon to view Present Value (Click the icon to view Future Value Read the requirements Reference Requirement 1. How much money must Periods Period 1 Period 2 Period 3 Period 4 Period Period 1% Period T Period To make the plan work, you must accum Requirement 2. How does this amount Over the course of your retirement yo However, by age 40 you only need to t These numbers are different becau OA You need to have far less accum OB. You need to have far more acoun Period P10 Period 11 Period 12 Period 13 Period 14 Period 15 OC. You need to have the same amo Ped 16 OD. None of the above Period 17 Period 18 Prod 16.50 17.29 1840 20:00 21.34 252 17 26 1864 2056 21 82 2346 257 18.43 2001 21.7 25.70 2584 2821 1961 21.41 23.41 25.65 28 13 3091 2081 22.84 25.12 2767 3054 33.76 2200 24.30 2687 2078 3307 3679 Period 21 22 Period 23 24 Period 25 Future Value of Ordinary Annuity of $1 2% 3% 4% 9% 7% 50% 12% 14% 19% 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 2010 2.000 2030 2040 2050 2060 2.070 2.000 2.000 2.500 2.120 2.140 2.150 3.030 3.000 3.091 3122 3153 314 3.215 326 327 3.310 3.374 3440 3473 4060 4.122 414 4246 4.310 4375 4440 4506 4573 4641 4779 44214003 5.101 5204 5.309 5416 5526 5437 5751 57 5305 105 6353 6810 6.742 6.552 6.308 6468 6633 6.802 6575 7153 7306 7333 7.715 A115 8M 754 7254 7434 7662 7800 142 34 8454 23 9200 9.487 10.09 13.73 11.07 200 583 892 9214 9549 5897 10.260 10:44 11.03 11.44 12.30 13.23 13.73 9.369 9756 10 16 10.58 11.00 11.4 11.30 12.49 13.02 13.58 14.78 14.00 16.79 10.46 1095 11 46 1201 12.58 13.18 1382 544 15.19 1594 1755 1834 30.30 11.37 12.17 12.81 13.40 14.321 14.3 1268 13.41 14.19 15.03 15.00 1381 1468 15.42 1643 1771 1678 1445 1756 1833 2045 23.04 24.35 1789882034 21 38 34.13 2727 2900 2014 21.50 2296 2452 2800 3200 34.35 253 27135 2936 51.77 372 434 47M 27 3032 30.00 3636 4275 50 M72 304 33.75 3637 4054 48 1 34.00 17 45 41.30 450 55.75 3 3738 41.45 46.02 1.36 43.44 30 41.00 457 16 728 7205 9102 024 23.24 2578 2868 31.37 36.72 402 676 400 170 1048 18 24.47 27.30 30.54 34.25 3851 4339 4801 56.46 287 2140 230 1304 137 25.72 2885 3245 342 443 47.00 5344 60.85 0.53 79.54 1040 133 13 267 3042 3443 3500 44.50 5082 1818 6676 779 0.50 1182 18 42 28.34 32.00 3646 4185 47.75 54.86 6325 731 470 35 1333 19 2928 hower to the nearest whole dotar where & continues US