You plan to retire in exactly 20 years. you goal is to create a fund that will allow you to receive $20000 at the end of each year for the 30 years between retirement and death. you know that you will be able to earn 11% per year during the 30-yeat retirement period.
1. How large a fund will you need when you retire in 20 years to provide the 30-year, $20000 retirement annuity?
2. How much will you need today as a single amount to provide the fund calculated in part an if you earn only 9% per year during the 20 years preceding retirement?