you th com e You are planning for a very careement. You would t age and have enough moneywed to be 230.000 per year for the shadon to for t by making 10 instamos tome investment fund that you c omprou weethe money in this you are 70 years old Co the icon to the presente annuity ) Cho the cow the y e conto view the present ) D ecowhere we D To make your plan work answer the following questions Click the icon to view the questions) These numbers are different because OA You need to have far less accumulated than what you will withdraw because you only withdraw a portion of the investment every year the balance remain invested where comes to an 12 interest OB. You need to have the same accumulated as you wil withdraw because you will not eam further interest on your investment when you reach r ement OC. You need to have for more accumulated than what you will withdraw because you will withdraw a large portion of the investment every year the balance remain invested where I continues to am 12% OD. None of the above 3. How much must you pay into the investment each year for the first ten years? (Hint Your answer from Requirement becomes the future value of this aruty round your answer to the nearest whole dollar) You must pay the investment ach year for the first ten years year savings period and the withdraws you will make during rement Use the incontr o 4. How does the o you ut of pocket avis compare to the above the round your o the end of the ) n e who do Th a t 's worth the end Choose from any at rentrany number in the routes and the core to the next Gestion Reference Periods 20% 0.833 1.528 2.106 2.589 2.991 Present Value of Annuity of $1 196 2% 3964965 6 6 % 8% 10% 12% 14% 16% 18% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 1.970 1.942 1.913 1.886 1.859 | 1.833 1.783 1.736 1.690 1.647 1.605 1.566 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 5.795 5.601 5.417 5.2425.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 6.728 6.4726.230 6.0025.786 5.5825.206 4.868 4.564 4.288 4.039 3.812 7.652 7.325 7.020 6.7336.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 8.566 8.1627.786 7.435 7.108 6.8026.247 5.759 5.328 4.946 4.607 4.303 9.471 8.983 8.530 8.111 | 7.722 7.360 6.710 6.145 5.6505.216 4.833 4.494 10.368 9.787 9.2538 .760 8.3067.887 7.139 6.495 5.9385 .453 5.029 5.029 4.656 11.255 10.575 9.954 9.3858.863 8.384 7.536 6.814 6.1945.660 5.197 4.793 12.134 11.348 10.635 9.986 9.3948.853 7.904 7.103 6.4245.842 5.342 4.910 13.004 12.106 11.296 | 10.563 9.899 9.295 8.244 7.3676.628 6.002 5.468 5.008 13.865 12.849 11.938 11.11810.380 9.712 8.559. 7.606 6.811 6.142 5.575 5.092 18.046 16.351 14.877 13.590 | 12.462 11.470 9.818 8.514 7.469 6.623 5.9295.353 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 | 7.8436.873 6.097 5.467 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.870 4.948 tinue 20 25 it co Print Done Reference Periods vwN 1% 2% 0.990 0.980 0.980 0.961 0.971 0.942 0.961 0.924 0.951 0.906 0.942 0.888 0.933 0.871 0.923 0.853 0.914 0.837 0.905 0.820 3% 0.971 0.943 0.915 0.888 0.863 496 0.962 0.925 0.889 0.855 0.822 0.837 0.813 0.789 0.766 0.744 0.722 0.701 0.681 0.661 0.642 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 Present Value of $1 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.952 0.943 0.926 0.9090.893 0.877 0.862 0.847 0.833 0.907 0.890 0.8570.826 0.797 0.769 0.743 0.718 0.694 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.746 0.507 0.456 0.410 0.370 0.335 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.677 0.627 0.540 0.467 0.404 0.305 0.266 0.233 0.6450.5920.500 0.424 0.361 0.308 0.263 0.225 0.194 0.614 0.558 0.463 0.386 0.322 0.227 0.191 0.162 0.585 0527 0.429 0.350 0.287 0.237 0.1950.162 0.135 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.1370.112 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.417 0.313 0.239 0.183 0.140 0.108 0.084 0.065 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 1 0.010 0.896 0.887 0.879 0.870 0.861 0.804 0.788 0.773 0.758 0.743 0.780 0.610 0.478 0.375 Print Done Future Value of $1 Periods 6% 1296 169 1.120 1.254 1% 1.010 1.020 1.030 1.041 1.051 2% 11.020 1.040 1.061 1.082 1.104 396 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 8N 1.0601.080 1.124 1.166 1.191 1.260 1.262 1.360 1.469 1096 1.100 1.210 1.331 1.464 1.611 149 1.140 1.300 1.482 18% 1.180 1.392 1.643 1.939 1.160 1.346 1.561 311 2.100 2096 1.200 1.440 1.728 2.074 2.488 1.405 1.574 1.762 1.338 1689 1.925 22 2.700 3.185 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.772 1.949 2.144 2.358 1.974 2.211 2.476 2.773 2.199 2.502 2.853 3.252 3.278 3.803 1.411 3.759 4.435 5.234 2.986 3.583 4.300 5.160 6.192 2.594 3.106 3.707 5.117 5.936 1.243 1.268 1.294 1.319 1.346 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 6.836 2.853 3.138 3.452 3.797 4.177 6.727 10.835 3.479 3.896 4.363 4.887 5.474 5.492 6.261 7.138 6.176 7.288 8.599 10.147 11.974 7.430 8.916 10.699 12.839 15.407 7.988 9.266 1.486 1.641 1.806 2.094 2.191 2.666 2.653 3.386 3.207 4.292 4.661 6.848 9.646 17.000 13.743 26.462 19.461 40.874 27.393 62.669 38.338 95.396 Print Done More Info 1. How much money must you accumulate by retirement? (Hint: Find the present value of the $230,000 withdrawals.) 2. How does this amount compare to the total amount you will draw out of the investment during retirement? How can these numbers be so different? 3. How much must you pay into the investment each year for the first ten years? (Hint: Your answer from Requirement 1 becomes the future value of this annuity.) 4. How does the total out-of-pocket savings compare to the investment's value at the end of the ten-year savings period and the withdrawals you will make during retirement