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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

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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 $240,000 per year for the next 40 years (based on family history you think you willve to age 80). You plan to save by making 20 equal annual installments (tromage 20 to age 40) into a fairly risky investment fund that you expect will earn 12% per year. You will leave the money in this fund until it is completely depleted when you are 30 years old Click the icon to view Present Value of $1 table) Click the icon to vew Present Value of Ordinary Annuity of $1 table> Click the loon to view Future Value of 51 table) Click the icon to view Funern Value of Ordinary Annuity of S* tuble) Read the moucements Requirements. How much money must you accumulate by retirement to make your plan word? (Ant. Find the present value of the $240,000 withdrawals) {Round your final answer to nearest whole dolar) To make the play work, you must at this amount by rement Requirement 2. How does the amount compare to the tow wourt you will wihrow from the investment ring trement? How come umber be to 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 O A You need to have far more accumulated that what you will withdraw because you will window a large portion of the investment every year the balance remains nested where it continues to eam 13% interest OB. You need to have the same amount accumulated as you will with because you will not eam further interest on your investment when you reach retirement You need to have for less accumulated than what you wil withdraw because you only withdraw a portion of the westment every year the balance remains invested where it continues to an 25 interest D. None of the above

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