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 draw $205,000 per year for the next 30 years (based on family history, you think you'll live to age 70). You plan to save for retirement 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 the present value annuity table.) (Click the icon to view the future value annuity table) (Click the icon to view the present value table) (Click the icon to view the future value table) To make your plan work answer the following questions (Click the icon to view the questions) 1. How much money must you accumulate by retirement? (Hint Find the present value of the $205,000 withdrawals) Calculate the present value to find out how much money must be accumulated by retirement (Round your answer to the nearest whole dollar) The present value is
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 draw $205,000 per year for the next 30 years (based on family history, you think you'll live to age 70). You plan to save for retirement 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 the present value annuity table.) (Click the icon to view the future value annuity table) (Click the icon to view the present value table) (Click the icon to view the future value table) To make your plan work answer the following questions (Click the icon to view the questions) 1. How much money must you accumulate by retirement? (Hint Find the present value of the $205,000 withdrawals) Calculate the present value to find out how much money must be accumulated by retirement (Round your answer to the nearest whole dollar) The present value is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![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 draw $205,000 per year for the next 30 years (based on
family history, you think you'll live to age 70). You plan to save for retirement 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 the present value annuity table.)
(Click the icon to view the future value annuity table)
(Click the icon to view the present value table)
(Click the icon to view the future value table.)
To make your plan work answer the following questions
(Click the icon to view the questions)
CREED
1. How much money must you accumulate by retirement? (Hint Find the present value of the $205,000 withdrawals)
Calculate the present value to find out how much money must be accumulated by retirement. (Round your answer to the nearest whole dollar)
The present value is](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd2d0306-23c0-4d1a-b281-65a854e72f36%2F7b662de5-2838-40c0-aa77-d2ca65ae6b6d%2Flyv2log_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 draw $205,000 per year for the next 30 years (based on
family history, you think you'll live to age 70). You plan to save for retirement 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 the present value annuity table.)
(Click the icon to view the future value annuity table)
(Click the icon to view the present value table)
(Click the icon to view the future value table.)
To make your plan work answer the following questions
(Click the icon to view the questions)
CREED
1. How much money must you accumulate by retirement? (Hint Find the present value of the $205,000 withdrawals)
Calculate the present value to find out how much money must be accumulated by retirement. (Round your answer to the nearest whole dollar)
The present value is
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