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You plan to resign from your position as CEO of your company in exactly 20 years from now You wish to create a fund so
You plan to resign from your position as CEO of your company in exactly 20 years from now You wish to create a fund so that when you retire, you will receive $20,000 at the end of each year for 30 years after retirement. You will be able to earn 1 100 per year during the 30-year retirement period as CEO of your company in exactly 20 ycars from now a. How large a fund will you need when you retire in 20 years to provide the 30-year, $20,000 retirement annuity? (2 marks) much will you need today as a single amount to provide the fund calculated in part (a) if you earn only 9% per year during the 20 years preceding retirement? (2 marks) c. What effect would an increase in the rate you can earn both during and prior to retirement have on the values found in parts (a) and (b)? Explain. (2 marks) d. Now assume that you will earn 10% from now throughtheeHttpptie-ement. You want to make 20 end-of-year deposits into your retirement account that will fund the 30-year stream of $20,000 annual annuity payments. How large do your annual deposits have to be? (3 marks). e setrement
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