You plan to retire in exactly 20 years. Your goal is to create fund that will allow you to receive $20000 at the end of each year for the 30 years post retirement. You know that you will be able to earn 11% per year during the 30 year retirement period.

a. How large fund will you need when you retire in 20 years to provide the 30 year,$20000 retirement annuity?

b. How 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?

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 with an illustration