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 $235,000 per year for the next 30 years (based on family history, you think you will live to age 70). 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 earn 8% per year. You will leave the money in this fund until it is completely depleted when you are 70 years old. 3 (Click the icon to view Present Value of $1 table.) Click the icon to view Present Value of Ordinary Annuity of $1 table.) 5(Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. How much money must you accumulate by retirement to make your plan work? (Hint: Find the present value of the $235,000 withdrawals.) (Round your final answer to the nearest whole dollar.) To make the plan work, you must accumulate $ by 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 different? Over the course of your retirement you will be withdrawing $ L . However, by age 40 you only need to have invested These numbers are different because: O A. You need to have the same amount accumulated as you will withdraw because you will not earn further interest on your investment when you reach retirement. OB. You need to have far more accumulated than what you will withdraw because you will withdraw a large portion of the investment every yearthe balance remains invested where it continues to earn 8% interest. OC. You need to have far less accumulated than what you will withdraw because you only withdraw a portion of the investment every yearthe balance remains invested where it continues to earn 8% interest. OD. None of the above Choose from any list or enter any number in the input fields and then continue to the next question. 0.233 0.361 Present Value of $1 | Periods] 1% 2% 3% 4% | 5% 6% T7% 8% 9% 10% [12% | 14% 15% ] 16% | 18% | 20%, 10.990 | 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 0.980 0.961 0.943 10.925 0.907 0.890 0.873 0.857 0.842 10.826 0.797 10.769 0.756 0.743 0.718 0.694 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 10.675 0.658 0.641 0.609 0.579 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 10.592 0.572 0.552 0.516 0.482 0.951 | 0.906 | 0.863 | 0.822 0.784 10.747 0.713 | 0.681 10.650 10.621 0.567 0.519 0.497 0.476 0.437 0.402 0.942 10.888 0.837 | 0.790 | 0.746 | 0.705 0.666 10.630 0.596 10.564 10.507 0.456 10.432 0.410 0.370 10.335 0.933 10.871 0.813 10.760 0.711 0.665 10.623 0.583 0.547 10.513 0.452 0.400 0.376 0.354 0.314 10.279 0.923 10.853 0.789 10.731 0.677 0.627 10.582 0.540 0.502 0.467 0.404 10.351 0.327 0.305 0.266 0.914 10.837 0.766 10.703 0.645 0.592 0.544 0.500 0.460 0.424 0.308 10.284 0.263 0.225 0.194 0.905 10.820 0.744 10.676 10.614 0.558 0.508 0.463 0.422 0.386 | 0.322 10.270 0.247 10.227 | 10.191 0.162 0.896 10.804 0.722 10.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 0.887 0.788 10.701 | 0.625 10.557 0.497 0.444 10.397 0.356 0.319 0.257 10.208 0.187 10.168 0.137 0.112 0.879 0.773 0.681 0.601 10.530 0.469 0.415 0.368 0.326 0.290 0.229 10.182 10.163 10.145 10.116 0.093 0.870 0.758 0.661 0.577 10.505 0.442 0.388 0.340 0.299 0.263 0.205 10.160 0.141 10.125 0.099 0.078 0.861 0.743 10.642 | 0.555 0.417 10.362 0.315 0.275 0.239 10.183 0.140 0.123 0.108 0.084 10.065 0.853 10.728 0.623 10.534 10.458 0.394 0.339 0.292 0.252 0.218 0.163 10.123 10.107 0.093 0.071 10.054 | 0.844 10.7141 0.605 | 10.513 | 0.436 0.371 0.317 0.270 10.231 0.198 0.146 10.108 0.093 10.080 0.060 0.045 0.836 10.700 l 0.587 10.494 0.416 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 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 0.820 | 0.673 | 0.554 | 0.456 | 0.377 0.312 0.258 0.215 10.178 0.149 0.104 0.073 0.061 0.051 10.037 0.026 10.811 | 0.660 | 0.538 | 0.439 | 0.359 | 0.294 | 0.242 | 0.199 | 0.164 | 0.135 | 0.093 | 0.064 | 0.053 | 0.044 | 0.031 0.022 0.803 | 0.647 | 0.522 | 0.422 | 0.342 | 0.278 | 0.226 | 0.184 | 0.150 | 0.123 | 0.083 | 0.056 | 0.046 | 0.038 | 0.026 | 0.018 | | 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 | 0.022 | 0.015 12345 67890 HQ8466MB98a88 0.350 Future Value of $1 1.062 1.265 1.993 1.094 1.551 Periods | 1% | 2%, 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% 12% | 14% | 15% 1.010 1.020 1.030 | 1.040 | 1.050 1.060 | 1.070 11.080 | 1.090 | 1.100 | 1.120 | 1.140 | 1.150 1.020 1.040 1.061 | 1.082 1103 1.124 1.166 1.188 1.210 1.254 | 1.300 1.323 1.030 1061 1.093 | 1.125 1.158 1.191 1.225 1.260 1.295 1.331 1.4051 1.482 1.521 1.041 1.082 | 1.126 1.170 1.216 | 1.262 1.311 1.360 141211AM | |-- 1.464 | 1.574 1.689 1.749 1.051 1.104 | 1.159 1.217 1.276 1.338 | 1.403 1.469 1.539 1.611 1.925 2.011 1.126 1.194 | 1.340 1.419 1.501 1.587 | 1.677 1.772 1.974 2.195 | 2.313 1.072 | 1.149 | 1.230 1.316 1.407 1.504 1.606 | 1.714 | 1.828 1.949 2.211 || 2.502 | 2.660 1.083 | 1.172 | 1.267 1.369 | 1.477 1.594 | 1.718 | 1.851 2.144 12.476 2.853 13.059 1.195 1.305 1.423 1.689 1.838 1.999 | 2.172 2.358 2.773 3.252 13.518 1.105 1219 1.480 1.629 1.791 | 1.967 2.159 2.367 2.594 3.106 3.707 14.046 1.116 | 1.243 | 1.384 1.539 1.710 1.898 2.105 12.332 2.580 2.853 3.479 4.226 4.652 1.127 1.268 | 1.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4.818 15.350 1.138 1.294 | 1.469 2.133 2.410 12.720 3.066 3.452 4.363 5.492 6.153 1.149 1.319 1.732 | 1.980 | 2.261 2.579 2.937 3.342 3.798 4.887 6.261 7.076 1.161 | 1.346 | 1.558 1.801 | 2.079 12.759 3.172 13.642 4.177 5.474 7.138 18.137 1.173 | 1.373 | 1.605 | 1.873 | 2.183 | 2.540 12.952 3.426 3.970 4.595 6.130 8.137 9.358 1.184 1.400 1.653 1.948 12.292 2.693 3.159 3.700 4.328 5.054 6.866 9.276 | 10.76 1.196 | 1.428 | 1.702 12.026 2.407 2.854 3.380 3.996 4.717 7.690 10.58 12.38 1.208 | 1.457 | 1.754 12.107 12.527 | 3.026 3.617 4.316 15.142 6.116 8.613 12.06 14.23 1.220 | | 1.486 | 1.806 12.191 2.653 3.207 3.870 4.661 15.604 6.727 9.646 13.74 16.37 1.232 1.516 1.860 2.279 2.786 3.400 4.141 5.034 6.109 10.80 | 15.67 18.82 1.245 | 1.546 | 1.916 2.370 12.925 3.604 14.430 5.437 16.659 8.140 12.10 117.86 21.64 | 1.257 | 1.577 | 1.974 | 2.465 | 3.072 | 3.820 | 4.741 | 5.87117.258 | 8.954 | 13.55 | 20.36 | 24.89 34567890 H28466 1.665 1.886 2.397 5.560 7.400 5.242 Present Value of Ordinary Annuity of $1 Periods | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 14% | 15% | 16% | 18% | 20% 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 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.759 | 1.736 | 1.690 | 1.647 | 1.626 1.605 1.566 1.528 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 12.246 | 2.174 2.106 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 4.853 4.713 4.580 4.452 4.329 4.212 14.100 | 3.993 3.890 3.791 3.605 3.433 3.352 3.274 | 3.127 2.991 5.795 5.601 5.417 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 6.728 6.472 16.230 6.002 5.786 5.582 5.389 15.206 15.033 14.868 4.564 4.288 4.160 4.039 3.812 3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.837 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.031 9.471 8.983 8.530 18.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 5.019 4.833 4.494 4.192 10.368 19.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 15.938 5.453 5.234 5.029 4.656 4.327 11.255 10.575 19.954 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 12.134 11.348 10.635 19.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5.583 5.342 4.910 4.533 13.004 | 12.106 | 11.296 | 10.563] 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.468 15.008 4.611 13.865 | 12.849 | 11.938 | 11.118 | 10.380 | 9.712 9.108 8.559 8.061 7.606 6.811 6.142 15.847 5.575 5.092 4.675 14.718 | 13.578 | 12.561| 11.652 | 10.838| 10.106 | 9.447 | 8.851 || 8.313 7.824 6.974 6.265 5.954 5.669 5162 4.730 15.562 | 14.292 | 13.166 | 12.166 111.274 | 10.477 19.763 19.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.775 16.398 | 14.992 | 13.754 112.659 | 11.690 | 10.828 | 10.059 19.372 8.756 8.201 17.250 6.467 6.128 5.818 5.273 4.812 17.226 | 15.678114.324 113.134 112.085111.158 | 10.336 9.604 8.950 8.365 7.366 16.550 6.198 5.877 5.316 4.844 18.046| 16.351| 14.877 | 13.590 | 12.462 | 11.470 | 10.594 | 9.818 || 9.129 8.514 7.469 6.623 6.259 5.929 5.353 4.870 18.857 | 17.011 | 15.415| 14.029 | 12.821 | 11.764 | 10.836 | 10.017 | 9.292 18.649 7.562 6.687 6.312 5.973 5.384 4.891 19.660 117.658 | 15.937 114.451113.163 | 12.042 111.061110.2011 9.442 8.772 | 7.645 6.743 6.359 6.011 5.410 4.909 20.456 | 18.292 | 16.444 | 14.857 | 13.489 | 12.303111.272 | 10.37119.580 18.883 17.718 16.792 16.399 16.044 15.432 14.925 34567890 H28466MB9%a88 Future Value of Ordinary Annuity of $1 | Periods | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 14% | 15% 1.000 | 1.000 | 1.000 | 1.000 | 1.000 | 1.000 | 1.000 | 1.000 | 1.000 | 1.000 | 1.000 | 1.000 | 1.000 2.010 | 2.020 2.030 12.040 | 2.050 12.060 2.070 12.080 | 2.090 2.100 2.120 2.150 3.030 3.060 3.091 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.374 13.440 3.473 4.060 4.122 4.184 4.246 4.310 4.375 4.440 4.506 4.573 4.641 4.779 4.921 4.993 5.101 5.204 5.309 5.416 5.526 5.637 5.751 5.867 5.985 6.105 6.353 6.610 6.742 4567890HQ8466M898 15.97 3 27.98 6.152 6.308 6.468 6.633 6.802 6.975 7.153 7.336 7.523 7.716 8.115 8.536 8.754 7.214 7.434 7.662 7.898 8.142 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 88.286 8.583 8.892 9.214 9.549 9.897 10.260 10.64 11.03 11.44 12.30 13.23 13.73 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 10.46 10.95 11.46 | 12.01 12.58 13.18 13.82 14.49 15.19 15.94 17.55 19.34 20.30 11.57 12.17 12.81 13.49 14.21 14.97 15.78 16.65 17.56 18.53 20.65 123.04 24.35 12.68 13.41 14.19 15.03 15.92 16.87 17.89 18.98 20.14 21.38 124.13 27.27 29.00 13.81 14.68 15.62 16.63 17.71 18.88 20.14 21.50 22.95 24.52 32.09 34.35 14.95 17.09 18.29 19.60 21.02 22.55 24.21 26.02 37.58 40.50 16.10 17.29 18.60 20.02 21.58 123.28 25.13 27.15 29.36 31.77 | 37.28 | 43.84 47.58 17.26 18.64 20.16 | 21.82 23.66 25.67 27.89 30.32 33.00 35.95 42.75 50.98 55.72 18.43 | 20.01 21.76 23.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 65.08 19.61 | 21.41 23.41 25.65 28.13 30.91 34.00 37.45 41.30 45.60 55.75 68.39 75.84 20.81 22.84 25, 12 27.67 30.54 33.76 37.38 41.45 46.02 151.16 163.44 78.97 88.21 22.02 | 24.30 26.87 29.78 | 33.07 36.79 41.00 | 45.76 | 51.16 | 57.28 | 72.05 | 91.02 102.4 23.24 25.78 28.68 31.97 35.72 39.99 44.87 50.42 56.76 64.00 81.70 104.8 118.8 24.47 27.30 30.54 | 34.25 | 38.51 | 43.39 | 49.01 | 55.46 | 62.87 171.40 | 92.50 | 120.4 | 137.6 25.72 | 28.85 |32.45 | 36.62 141.43 147.00 153.44 160.89 169.53 179.54 | 104.6 | 138.3 | 159.31