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Funding your retirement??Personal Finance Problem?You plan to retire in exactly 22 years. Your goal is to create a fund that will allow you to receive ?$21,000 at the end of each year for the 30 years between retirement and death? (a psychic told you that you would die exactly 30 years after you? retire). You know that you will be able to earn 9?% per year during the 30 year retirement period.

a.??How large a fund will you need when you retire in 22 years to provide the 30?-year, $21,000 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 7% per year during the 22 years preceding? retirement?

d.??Now assume that you will earn 8?% from now through the end of your retirement. You want to make 22?, ?end-of-year deposits into your retirement account that will fund the 30?-year stream of

$21,000 annual annuity payments. How large do your annual deposits have to? be?

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? (Select from the drop-down menus.) n the calculation of present values, you should notice that the higher the interest rate, the lower the present value. Therefore, in part a and b both values would be sum would be needed in 21 years for the annuity and a amount would have to be put away today to accumulate the V.In other words, a needed future sum

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