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 15 equal annual installments (from age 25 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.

Present Value of $1 table:

Present Value of Ordinary Annuity of $1 table:

Future Value of $1 table:

Future Value of Ordinary Annuity of $1 table:

REQUIREMENTS:

QUESTION:

Present Value of $1 4% | 5% | 6% 9% | 10% | 12% | 14% | 15% | 16% | 18% | 20% 10.990 0.980 0.971 0.9620.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0857 0.842 0.826 0.79707690.756 0.743 0.718 | 0.694 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0751 0.712 0.675 0.658 0.640.609 0.579 4 0.961 0.924 0.888 0855 0823 0.792 0.763 0.735 0.708 0.683 0.6360.5920.5720.5520.516 0.482 0.951 0.906 0863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0476 0.437 0.402 6 0.942 0.888 0.837 0.790 0.746 0.705 0666 0.630 0.596 0.564 0.507 0456 0.432 0.410 0.370 0.335 7 0.933 0.871 0.813 0.760 0.7110.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.3540.314 0.279 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0467 0.404 0.351 0.327 0.305 0.266 0.233 9 0.914 0.837 0.766 0703 0.645 0.592 0.544 0.500 0.460 0424 0.361 0.308 0.284 0.263 0.225 0.194 10 0.905 0.820 0.744 0676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 Periods 1% 2% 3% | | 7% | 8% | 11 0.896 0.804 0.722 0.650 0.585 0.527 0.4750.429 0.388 0350 0.287 0.237 0.215 0.195 0.162 0.135 12 0.887 0.788 0.701 0.625 0.557 0.497 0444 0.397 0.356 0.3190.2570.2080.1870.1680137 0.112 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 14 0.870 0.758 0.661 0.577 0.505 0442 0.388 0.340 0.299 0.263 0.205 0.1600.141 0.125 0.099 0.078 15 0.861 0743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.0840.065 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.2180.1630.1230.107 0.093 0.071 0.054 17 0844 0.714 0.605 0.513 0436 0.3710.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045