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You are planning for a very earty retiremerh. You would like to retre at age 40 and have enough money saved to be able to

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You are planning for a very earty retiremerh. You would like to retre at age 40 and have enough money saved to be able to withdraw $210,000 per year for the next 30 years fbased on family history you think you wili live to age 70 ). You plan to save by making 15 equal annual instalments (trom age 25 to age 40 ) into a fairly risky investirent fund that you expect will earm 12% leave the money in this fund unbl it is completely depleted when you are 70 years old. (Cick the icon to view Present Value of $1 table.) (Clck the icon to view Present Value of Ondinary Annuly of $1 table.) (Cick the ican to view Future Value of \$1 table) (Click the icon to vee Future Value of Ordinary Annuly of $1 table) Read the tequicements. Requirement 1. How much money must you accumudate by tetremont to make your plan work? (Hent. Find the present valee of the 5210.000 wethdrawals) (Round your final answe to the nearest whole dolati.) To make the plan work, you munt accumulate this amount by retrement Requirement 2. How does vis amount compore to the toal amourt you wil withdraw from the inetement during retremen? How can these numbers be so different? Over the course of your retirement you will be wathdrwing However, by age 40 you only need to have imrested These numbers are diferent bpcaise B. You need io have tar more accumulated than whal you wal wendraw because you wal withdraw a large portion of the investment every year-ihe balance remans invested where it consinues to eam 12% interest. C. You need to have far lew accumulated than what you wal wehdraw because you only withiraw a portion of the investment every year-the balance rema na ingested where f continues to earn 124 interest D. None of the abcre Present Value of $1 Print Done Reference Reference Reference

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