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ou are planning for a very early retirement. You would like to retire at age 40 and have enough money saved to be able to withdraw 5240,000 per year for the next 30 ears (based on family history, you think you will live to age 70). You plan to save by making 10 equal annual installments (from age 30 to age 40) into a fairly risky nvestment fund that you expect will earn 12% per year. You will leave the money in this fund until it is completely depleted when you are 70 years old. Click the icon to view Present Value of $1 table) Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table) Read the requirements Requirement 1. How much money must you accumulate by retirement to make your plan work? (Hint: Find the present value of the $240,000 withdrawals.) (Round your final answer to the nearest whole dollar) To make the plan work, you must accumulate this amount by retirement - X Reference 49 6 Present Value of si Periods 1% 2% 39 5% 7% 8% 9% 10% 12% 14% 15% 16% 18%20% Period 1 0990 0.980 0971 0.962 0.9520941 0935 0.926 0917 0.909 0893 0.8770870 0.8620.847 0.833 Period 2 090 09610943 0.925 0.907.390 0.873 08570 84208260.797 0.769 0.756 0.7490.7180.694 Period 3 0,971 0.942 0.910.889 036408400816 0.794 0.772 0.7510,712 0.675065806410.609 579 Period 4 10.961 0.9240.88808550.8230.792 0.763 0.735 0.708 0.6830,636 0.5920 572 0.552 0.516 0.482 Periods 0951 0.906 03630.822 0.784 07470.713 0.681 0.650 0,6210 56705190.49704760.437 0.402 Period 6 10 942 0.880.837 0.790 0.746 0.70 0.6660.630 0.5960 564 5070.456 0.4320-410 0.370 0.335 Period 7 0,933 0.8710.813 0.76007110.6650621053 05470513 0.4520.400 0.37603540 3140.279 Period 8 0.923 0.8530-7890,7310677 0.62703820540 0.502 0.46704040351 0.3270 3050.266 0233 Period 90.914 08370.766 0.70306450.5920.540.500 0.460 0.4240361 03080284 0.263 0.225 0.194 Period 100.005 0.20 0.7440.6760614 0.55 0.5080463 0.422 036 0322 0.270 0247 0.227 0.1910.162 Period 110.96 0.8040.7220 650 0.38 0.527 0.475 0429 0.38801500267 0.2170219 0.19 0.162 0.135 Perind 120.887 0.78 0.701062505570.4970.4440.397 0156 0319 0.257 0.20 0.187 0.1680.137 0.112 Period 130.879 0 7730610 601 0.530 0,469 0.45 0.368 0.3260.2900229 0.182 0.16 0.1450 1160093 Period 140370 0.75806610.59705050.4430388 0.340 0.299 0.263 0.2050.1600.141 0.125 0.0990078 Period 150.610.70642055504810417 03620315 0 2750 239.100.140 0.125 0.10800840065 Period 160.853 0.728062305340-4580394 0.3390.292 0.252 0.218 0.16 0.125 0.10% 0.09 0.071 0.054 Period 170 84410714 0.5 0.313 0.436 0371 03170.270 02310.1980.14 0.10 0.00 0.00 0.060 0.045 Period 10,836 0700 0.587 0.49404160350 0.296 0.230 0.212 0.100.130 0.09 0.01 0.00051 0.038 Period 19 082806860.57004750 1960.331 0.277 0.232 0 1940 1640.116 0.003 0.070 0.000 0.04 0.031 Period 200320 0.6730.3540456 0.37703120.25% 0.21 0.178 0.149 0.104 0.075 0.00100510037 0.026 Period 21x106600338 0.43903590294 0242 0.1990.1640.135 0.091 0.064005300001 0.022 Period 220 00667 0 322 0422 0.342 0.278 0.2260.1840.1500123008 0.0560016 0.03 0.0260018 Period 230.795 0,634 0.07 0.40503260262 0.211 0.170 0.138 0.1120074004900400,033 0,022 0.015 Period 240.20 0.622 0492 0.5900310 0.247 0.19 0.15 0.126 0.1020066 0.000035 0.0280019 0.013 Period 250.70 0.610478 0.375 0.295 023 01840146 0.116 0.092 005 0.03 0.030000400100010 Period 260.772 0.598 0:464 0.3610.2010 220 0.172 0.135 0.1050084 0.053 0.033 0.026 0.021 0.014 0.000 Period 270.764 0.356 04503470268 0.20 0.161 0.125 0.09 0.076 0.04700290023 0.01 0.01 0.007 Period 280757074 0.437 0333 0.250.19 0.150 116 0.000060042 0.025 0.0200016 0.0100006 Period 29 0.7490563 0.4340,120.243 DIR01410 10700820063 00170022001700140.008 0.005 period 3007420 5520412 0.23 0.174 0151009000750057 0.053 0.00000150012 0.007 0.001 Period 400672 0.45 0.10702080142 0.007 0.0679046001200220011 000 0004 0.003 0.001 0.001 Period 500.000372 0.22 0.1410.05700540034 0.021 0.003 0.00 0.00 0.001 0.001 0.001 Future Value of S1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% Period 1 1.010 1.020 1.030 | 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.120 1.140 1.150 Period 2 1.020 1.040 1.061 1.0821.1031.124 1.145 1.166 1.1881.210 1.254 1.300 1.323 Period 3 1.030 1.061 1.093 1.125 1.1581.191 1.225 1.260 1.295 1.331 1.405 1.482 1.521 Period 4 1.041 1.082 | 1.126 1.170 1.216 1.2621.311 1.360 1.412 1.464 1.574 1.689 1.749 Period 5 1.051 | 1.104 1.159 1.217 1.276 | 1.338 1.403 1.469 1.539 1.611 1.762 1.925 2.011 Period 6 1.062 1.126 1.1941.265 1.3401.419 1.501 1.587 1.6771.772 1.9742.1952.313 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.606 1.7141.828 1.949 2.211 2.502 2.660 Period 8 1.08311721.267 1.369 1.4771.594 1.7181.851 1.993 2.144 2.476 2.853 3.059 Period 9 1.094 1.195 1.305 1.423 1.551 1.689 1.838 1.999 2.172 2.3582.7733.252 3.518 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 1.967 2.159 2.367 2.594 3.106 3.707 4.046 Period 11 1.116 1.243 1.384 1.539 1.7101.898 2.105 2.3322.580 2.853 3.479 4.2264,652 Period 12 1.1271.2681.426 1,601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4.818 5.350 Period 13 1.138 1.294 1.469 1.665 1.886 2.1332.410 2.720 3.066 3.452 4.363 5.492 6.153 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.579 2.937 3.342 3.798 4.887 6.2617.076 Period 15 1.1611.346 1.55818012.0792.3972.759 3.1723.642 4.177 5.474 7.1388.137 Period 16 1.1731373 1.6051.873 2.183 2.540 2.952 3.426 3.970 4.595 6.130 8.1379.358 Period 17 1.184 1.400 1.653 1.948 2.292 2.693 3.159 3.700 4.3285,054 6.866 9.276 10.76 Period 18 1.1961 428 1.7022.0262.407 2.854 3.380 3.996 4.717 5.560 7.690 10.5812.38 Period 19 1.208 1.4571.754 2.107 2.527 3.026 3.6174316 5.142 6.116 8.613 12.06 14.23 Period 20 1.220 1.486 1.806 2.1912.653 3.207 3.870 4,661 5.604 6.727 9.646 13.74 16:37 Period 21 1.232 1.5161.860 2.279 2.786 3.400 41415.0346.1097.400 10.80 15.67 18.82 Period 22 1.2451.546 1.916 2.370 2.925 3.604 4.430 5.4376.659 8.140 12.10 17.86 21.64 Period 23 1 2571.577 1974 2.465 3.0723.820 4.741 5.8717.258 8.954 13.55 20.36 24.89 Period 24 1.270 1.608 2,033 2.563 3.225 4.049 5.072 6.341 7911 9.850 15.18 23.21 28.63 Period 25 1.282 1.64120942.666 3.386 4.29254276.848 8.623 10.83 17.00 26.46 32.92 Period 26 1.295 1.673 2.1572.772 3.556 4.5495.807 7.3969.399 11.92 19.04 30.1737.86 Period 27 1308 1.707 2.2212.883 3.73348226 2147.988 10.25 13.11 21.32 34 39 43.54 Period 28 1.321 1.741 2 288 2.999 3.920 5.112 6.649 8.627 11.17 14.42 23.88 39 2050.07 Period 29 1.335 1.776 2.357 3.119 4.1165.418 7.114 9.317 12.17 15.86 26.75 44.69 59.58 Period 30 1.348 1811 2.427 3.243 4322 5.743 7612 10.06 13.27 17.45 29.96 30.93 66.21 Period 40 1.489 2.208 3.262 4.801 7.040 10.29 14.9721.72 31.41 45.26 93.05 18892679 Period 50 1.645 2.692 4 384 7.107 11.4718.42 29.46 46,90 74.36 117.4 289.0 700 2 1,084 - Requirements 1. How much money must you accumulate by retirement to make your plan work? (Hint: Find the present value of the $240,000 withdrawals.) 2. How does this amount compare to the total amount you will withdraw from the investment during retirement? How can these numbers be so different? Print Done Present Value of Ordinary Annuity of S1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.9520.943 0.935 0.926 0.917 0.9090.893 0.877 0.870 0.862 0.847 0.833 Period 2 1.970 1.942 1913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.6901.647 1.626 1.605 1.566 1.528 Period 3 2.9412.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.4022.322 2.283 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.5463,465 3.3873.312 3.240 3.170 3,037 2.914 2.855 2.798 2.690 2.589 Period 5 4.8534.713 4.580 4.452 4.3294212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.2425.0764917 4.7674,623 4.4864.355 4.111 3.8893.784 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6,0025.786 5.582 5.389 5.206 5,033 4.8684564 4.288 4.160 4.0393.812 3.605 Period 8 7.652 7.3257.0206.733 6.4636.210 5.92157475.535 5.335 4.9684.639 44874.344 4.078 3.837 Period 9 8.566 8.1627.786 7.435 7.108 6.802 6.515 6.2475.9955.759 5.3284.946 | 4.7724.607 4.3034.031 Period 10 9471 8.983 8.530 8.111 7.722 7.360 7.024 6,710 6.418 6.145 5.6505.216 5.019 4,833 4.494 4.192 Period 11 10.3689.787 9.2538.760 8.3067.887 7.499 7.139 6.805 6.495 5.9385.453 5.2345.0294,656 4.327 Period 12 11,25510.575 995493858.8638.384 79437.5367.1616.814 6.1945.660 5.421 5.1974.793 4.439 Period 13 12.13411.348 10635 9.9869.3948.853 8.3587.904 7.487 7.103 6.424 5.8425.583 5.342 | 4.9104533 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 | 6.6286.002 5.7245.4685.0084611 Period 15 13.865 12.849 11.9381111810.3809712 9.10885598.061 7.6066.811 6.142 5.8475.575 5.092 4.675 Period 16 14.718 13.578 12 56111652 10.838|10.106 94478.8518 313 7.8246.9746.2655.9545.6695.1624.730 Period 1715.562 14.292 13.166 12.166|11.27410.4771 9.763 9.122 8.544 8.022 7.1206,373 6.047 5.749 5.222 4.775 Period 18 16 398 14.992 13.754 12.659|11.69010 828 10.059 9.3728.756 8.2017.250 6467 6.128 5.818 5.273 4812 Period 19 17 226 15.678 14.32413.134|12.0851115810,336 9.6048950 8.36573666.350 6.1985.877 5.316 4.844 Period 2018.046 16351 14.877 13.590 12.462 11.470 10.5949.818 9.129 85147.469 6.623 6.259 5.9295.353 4.870 Period 21 18.857|17.01115.415 14.029 12 821.1.764 10.836 10.017 9.292 8.6497.5626,687 6.3125.973 5.384 4.891 Period 22 19.660 17.658 159371445113.163 12.042 11.061102019.44287727.6456.7436,3596,011 5.410 4.909 Period 23 20.45618 292 16.44414857 13.48912.303 11.272 10.371 9.5808.883 77180.79263996.0445.432 4.925 Period 24 21.24318914 16.936 15.247 13.79912.550 11.469 10.529 9.707 985 7.784683564346.073 5:451 4937 Period 25 22.023 195231741315.622 14.094 12.78311 654 10.675 9.8239.077 7.8436.87364646,097 54674948 Period 26 22.795 20:12117.87715.983 14.375 13.00311.826 10.8109.929 91617.8966 906 6.491 6.118 5480 4956 Period 27 27.560 20.707 18.327 16.330 14,643 13.21111.987 1093510.027 9.237 7.94369356.5146.1365492 4964 Period 25 243162125118.764 16.66314.89813 400 12.1371105110,116 9.30779546.9616.534 6.1525.5024970 Period 29 25.066 21844 19.188 16.984 15.14113 591 122781115810.1989.370.0226.983 6.551 | 6.166 55104.975 Period 30 2580%2239619.600|17.29215372 13.765 12.40911 258|10.274 942780557.0036 566 6.1775.517 4.979 Period 402.835 27.355 23.115 19.793 17.159 15.0 13.332 11.92510.757 9.7798.244 7.105 6.64262135548 4.997 Period 50 19.19031.42425 73021482 18 25 15.762 11.80 12 233 10.962 9915047.133 6.661 6-2465.5544999 Future Value of Ordinary Annuity of S1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.010 2.020 2.030 2.0402.050 2.060 2.070 2.080 2.090 2.100 2.1202.140 2.150 Period 3 3.0303.0603.091 3.122 3.153 3.1843.215 3.246 3.278 3.310 3.374 3.440 3.473 Period 4 4.0604.122 4.1844.2464.310 4.375 4,440 4.5064.573 4.641 4.779 4.921 4.993 Period 5 5.101 5.2045.309 5.416 5.526 5,637 5.7515.8675.985 6.105 6.353 6,610 6.742 Period 6 6.1526,308 6.468 6.633 6.802 6.9757.1537.3367.523 7.7168.115 8.536 8.754 Period 7 72147.4347.662 7.898 8.142 8.394 8.654 8.9239.2009.487 10.09 10.73 11.07 Period 8 8.286 8.5838.8929.2149.5499.897 10.260 10.6411.03 11.44 12.30 13.23 13.73 Period 9 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.4913.02 13.5814.78 16,09 16.79 Period 10 10.46 10.95 11.46 12.01 12.58 13.18 13.82 14.49 15.1915.94 17.55 | 19.34 20.30 Period 11 11.57 12.17 12.8113.49 14.21 14.9715.78 16.65 17.56 18.53 20.65 23.04 24.35 Period 12 12.68 13.41 | 14.1915.03 15.92 16.87 17.89 18.98 20.1421.3824.13 27.2729.00 Period 13 13.81 14.68 15,62 16.63 17.7118.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 Period 14 14.95 1597 17.09 18.29 19.60 21.02 22.55 24.21 26.02 27.98 32.3937.58 40.50 Period 15 16.10 17.29 18.60 20.02 21.58 23.28 25.13 27.15 29.3631.77 37.28 43.84 47.58 Period 16 17.26 18.64 20.16 21.82 23.66 25.67 27.89 30.32 33.00 35.95 42.75 50.98 55.72 Period 17 18.43 20.0121.7623.70 25.84 28.21 30.84 33.75 36.97 40.5448.88 59.12 65.08 Period 18 19.61 21.41 23.41 25.65 28.13 30.91 34.00 37.4541.30 45.60 55.7568.39 75.84 Period 19 20.81 22.84 25.12 27.67 30.54 33.76 37.38 41.45 46.02 51.16 63.44 78.97 88.21 Period 20 22.02 24,30 26.87 29.7833.07 36.79 41.00 45.76 51.16 57.28 72.05 91.02 102.4 Period 21 23.24 25 7828.68 31.97 35.72 39.99 44.87 50.4256.76 64,00 81.70104.8 118.8 Period 22 24.47 27.30 30.5434.25 38.51 43.3949.01 $5.46|62.87 71.40 92.50 120.4 137.6 Period 23 25.72 28.85 32.4536.62 41.43 | 47.00 53.4460.89 69.53 79.54 104.6138.3 159.3 Period 24 26,97 30.42 34.4339.08 44.50 50.82 58.18 66.76 | 76.79 88.50 118.2 158.7184.2 Period 25 28 2432.03 36.4641.65 47.73 54.86 63.25 73.11 84.70 98.35133.3 181.9 212.8 Period 26 29.53 33.67 38.55 443151.1159.16 68.68 79.95 93.32 109.2 150.3 208.3245.7 Period 27 30.82 35 34 40.7147.08 54.6763.7174.4887.35 102.7 121.1 169.4238.5 283.6 Period 28 32.13 37.05 42.93 49.97 58.40 68.53 80.70 95.34 113.0 134.2 190.7 272.9327.1 Period 29 33.45 38.79 45.2252.97 62.32 | 73.6487.35 104.0 124.1 148,6214.6 312.1377.2 Period 30 34.78 40.57 47.5 56.08 66.44 79.06 94.46 113.3 136.3 164.5 241.3356.8 | 434.7 Period 40 48.8960.4075.40 95.03 120.81548 199.6259.1 3379 442.6767.1 1,342 1,779 Period 50 64.46 84.58 112.8 152.72093 290.3 406,5 573.8 815.1 1.164 2.400 4,9957,218 You are planning for a very early retirement, you would like to retire at age 40 and have enough money saved to be able to withdraw $240,000 per year for the next 30 years (based on family history, you think you will live to age 70). You plan to save by making 10 equal annual installments (from age 30 to age 40) into a fairly risky investment fund that you expect will earn 12% per year. You will leave the money in this fund until it is completely depleted when you are 70 years old. (Click the icon to view Present Value of $1 table) (Click the icon to view Present Value of Ordinary Annuity of $1 table> (Click the icon to view Future Value of $1 table Click the icon to view Future Value of Ordinary Annuity of $1 table) Road the requirements CHOD Requirement 1. How much money must you accumulate by retirement to make your plan work? (hine. Find the present value of the $240,000 withdrawals.) (Round your feat answer to the nearest whole dollar) To make the pion work, you must accumulate tus amount by retirement

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