You plan to retire in exactly 22 years Your goal is to create a fund that will allow you to receive $ 20,000 at the end of each year for the 30 years between retirement and death?

A) You know that you will be able to earn 9% per year during the 30 year retirement period. How large a fund will you need when you retire in 22 years to provide the 30 year $20,000 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?

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? Expalin?

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 $ 20,000 annual annuity payments. How large do your annual deposits have to? be?