You are planning for a very early retrement. You would like to retire at age 40 and have enough money saved to be able to draw $205.000 per year for the next 45 years (based on family history, you think youll live to age 85). You plan to save for retirement by making 20 equal annual instatments (from ago 20 to age 40) irto a fairly ricky investment fund that you topect will eam 10% per year. You will leave the mondy in this fund untain is completely depleted when you are 85 yearn old. (Click the icon to view the present value annuity table.) (Click the icon to view the future value annuity table) (Cilick the icon to view the present value table.) (Click the icon to view the future value table.) The present value is Requirement 2. How does thas amount compare the total amount you wil draw out of the investment during ietrement? kiow can these numbers be so dife'ent? Over the course of your tetrement you will be withdrawing t However, by age 40 you only need to have invested Requirements To make your plan work, answer the following: 1. How much money must you accumulate by retirement? (Hint. Find the present value of the $205,000 withdrawals. You may want to draw a time line showing the savings period and the retirement period.) 2. How does this amount compare the total amount you will draw out of the investment during retirement? How can these numbers be so different? 3. How much must you pay into the investment each year for the first 20 years? (Hint: Your answer from Requirement 1 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 20 -year savings period and the withdrawals you will make during retirement