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 $255,000 per year for the next 40 years based on family history, you think you live to age 80). You plan to save for retirement by making 15 equal annual instaliments (from age 25 to age 40) into a fairly risky investment fund that you expect will earn 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 con to view the present value to (Click the icon to view the future value table.) To make the following out More info 1. How Calcu Theo deren 1. How much money must you accumulate by retirement? (Hint Find the present value of the $255.000 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 dieron? 3. How much must you pay into the investment each year for the first fifteen years in your answer from Requirement 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 ten-year savings period and the withdrawals you will make during retirement? 2. Hoc Choos 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 $255,000 per year for the ne 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 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.) (Click the icon to view the future value table.) To make your plan work answer the following questions: Click the icon to view the questions.) 1. How much money must you accumulate by retirement? (Hint Find the present value or the $255,000 witharawais.) 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 $ 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? However, by age 40 you only need to have invested Over the course of your retirement you will be withdrawing $ 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 $255,000 per year for the next 40 years (based on family history, you think you 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 earn 14% per year. You will leave the money in 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 prosent value table.) (Click the icon to view the future value table.) To make your plan work answer the following questions: Click the icon to view the questions.) Over the course of your retirement you will be withdrawings However, by age 40 you only need to have invested These numbers are different because A. You need to have the same accumulated as you will withdraw because you will not eam further interest on your investment when you reach retirement B. You need to have far loss accumulated than what you will withdraw because you only withdraw a portion of the investment every year the balance remains/rvested when it continues antes Internet ontinue to the next question O A You need to have the same accumulated as you will withdraw because you will not eam further interest on your investment when you reach retirement OB. 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 earn 14% interest OC. 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 cam 14% interest OD. None of the above 0 You are planning for a very early retirement. You would like to retire al age 40 and have enough money saved to be able to draw $255,000 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 wil cam 10% per year. You will love 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 Kon to view the future value annuly table) Click the icon to view the present value table.) (Click the boon to view the future valutable) Joake your plan work answer the following questions Click the icon to view the questions) 3. How much must you pay into the Investment each year for the first ten years? (Hint Your answer from Requirement becomes the future value of this aruty Round your answer to the nearest who data) You must pay the womentach year for the first year's 4. How does the total out-of-pocket savings compare to the inwestment's value at the end of the then your savings period and the withdrawals you will make during the founded to nearest whole number that you calculated above, thon round your final answer to the nearest whole dar) The total out-of-pocket savings amounts 10 S This is for than the remont's worth at the end You must pays into the westeach year for the first to yours 4. How does the total out-of-pocket savings compare to the investment's value at the end of the fifteen-yoor savings period and the withdrawals you wil make during retirement (Use the investment rounded to the nearest whole number that you calculated above the round your final answer to the nearest whole dollar) The total out-obpocket savings amounts to $ This is tar than the investment's worth at the end of the years and remarkably than the amount of money you will eventually withdraw from the investment