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 $210,000 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 20 equal annual installments (from age 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 80 years old. (Click the icon to view the present value annuity table.) (Click the icon to view the future value annuity table.) 9Click 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 of the $210,000 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 $ 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? Over the course of your retirement you will be withdrawing $ However, by age 40 you only need to have invested 3. How much must you pay into the investment each year for the first twenty years? (Hint: Your answer from Requirement 1 becomes the future value of this annuity.) (Round your answer to the nearest whole dollar.) You must pay $ into the investment each year for the first twenty years. 4. How does the total out-of-pocket savings compare to the investment's value at the end of the twenty-year savings period and the withdrawals you will make during retirement? (Use the investment rounded to the nearest whole number that you calculated above, then round your final answer to the nearest whole dollar.) The total out-of-pocket savings amounts to $ This is far less than the investment's worth at the end of twenty years and remarkably lower than the amount of money you will eventually withdraw from the investment. Choose from any list or enter any number in the input fields and then continue to the next