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 draw $205,000 per year for the next 40 years (based on family history, you think you'll live to age 80). You plan to save for retirement by making 15 equal annual installments (from age 25 to age 40) into a fairly risky investment fund that you expect will eam 14% per year. You will leave the money in this fund until it is completely depleted when you are 80 years old. (Click the icon to view the present value annuity table.) (Click the icon to view the future value annuity table.) (Click the icon to view the present value table.) To make your plan work answer the following questions: (Click the icon to view the questions.) (Click the icon to view the future value table.) 1. How much money must you accumulate by retirement? (Hint: Find the present value of the $205,000 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 More info 1. How much money must you accumulate by retirement? (Hint: Find the present value of the $205,000 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? Print Done