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Secure I https/ Homework.aspxhomeworkld-482834701&iquestionld-1;&flushed-fase;&icld; 50063978icenterwinyes rinciples of Managerial Accounting: ACCT 2302-41007-SUMMER amani richardson &I; 8/4/18 2:43 PM omework: HW26 core: 0 of 100 pts 26-29A (book/static) You are planning for a very early retirement You would lke to retire at age 40 and have enough money saved to be able to withdraw 5215,000 per year for the next 40 1 of 1 (0comlete) HYV Score: 0%, O of 100pts EQuestion Hep based on family history, you think you will live to age 80). You plen to save by making 10 equal annual instalments (fhrom age 30 to age 40) into a tairly rishy investment 5ndthat youexpect wil earn 10% per y You wil leave the money in tis lundurdlltiscompletely depleted when you are 80 years old ?Cick the icon to view Present Value of S1 table ) ? Click theicon to view Present Value of Orinary Amity of S, table ) Click the icon to view Fusure Value of $1 table) Click the Icon to vew Futore Value of Ordinary Annuilty of $1 table) Read the tems Requirement 1. How much money must you accumulate by setiremert to make your plen wok? (Hnt Find t the present value of the $215,000 withdrawals)(Round To make the plan work you must accumulate by retirement Emer any nurt er n the edit lees and then cick ????? Answer Clear A 8 9 0

Explanation / Answer

rate of interest 10% calculation discounting factor 1/1.1^1 0.909091 215000 195454.5 1/1.1^2 0.826446 215000 177686 1/1.1^3 0.751315 215000 161532.7 1/1.1^4 0.683013 215000 146847.9 1/1.1^5 0.620921 215000 133498.1 1/1.1^6 0.564474 215000 121361.9 1/1.1^7 0.513158 215000 110329 1/1.1^8 0.466507 215000 100299.1 1/1.1^9 0.424098 215000 91180.99 1/1.1^10 0.385543 215000 82891.81 1/1.1^11 0.350494 215000 75356.19 1/1.1^12 0.318631 215000 68505.63 1/1.1^13 0.289664 215000 62277.84 1/1.1^14 0.263331 215000 56616.22 1/1.1^15 0.239392 215000 51469.29 1/1.1^16 0.217629 215000 46790.26 1/1.1^17 0.197845 215000 42536.6 1/1.1^18 0.179859 215000 38669.64 1/1.1^19 0.163508 215000 35154.22 1/1.1^20 0.148644 215000 31958.38 1/1.1^21 0.135131 215000 29053.07 1/1.1^22 0.122846 215000 26411.88 1/1.1^23 0.111678 215000 24010.8 1/1.1^24 0.101526 215000 21828 1/1.1^25 0.092296 215000 19843.64 1/1.1^26 0.083905 215000 18039.67 1/1.1^27 0.076278 215000 16399.7 1/1.1^28 0.069343 215000 14908.82 1/1.1^29 0.063039 215000 13553.47 1/1.1^30 0.057309 215000 12321.34 1/1.1^31 0.052099 215000 11201.22 1/1.1^32 0.047362 215000 10182.92 1/1.1^33 0.043057 215000 9257.204 1/1.1^34 0.039143 215000 8415.64 1/1.1^35 0.035584 215000 7650.582 1/1.1^36 0.032349 215000 6955.075 1/1.1^37 0.029408 215000 6322.795 1/1.1^38 0.026735 215000 5747.996 1/1.1^39 0.024304 215000 5225.451 1/1.1^40 0.022095 215000 4750.41 2102496 210249.6 2102496/10 210249.6 need to invest $210249.6 eary year for 10 year to get $215000 after retirement

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