Tom's sister, Janet, is also planning for retirement; however, she started saving for her retirement earlier than Tom since she expects that she will need more money for retirement based on the fact that women in their family usually live longer than men. She also is planning for a very early retirement. Janet would like to retire at age 40 and have enough money saved to be able to draw $250,000 per year for the next 50 years. Based on family history, she thinks it is likely that she will live to age 90. She plans to save by making 20 equal annual installments (from age 20 to age 40) into a fairly risky investment fund that she expects will earn 12% per year. She will leave the money in this fund until it is completed depleted when she is 90 years old. To make her plan work
a. How much money must Janet accumulate by retirement?
b. How much money will Janet draw out during her retirement?
c. How much must Janet pay into the investment each year for the first 20 years?
d. Compare the out-of-pocket savings to the investment value at the end of the 20 years to the withdrawals made during Janet's retirement. Comment below on how these numbers could be so different, if they are. Use full sentences, please. Comment also on how different Janet's numbers are from Tom's, if they are. Again, please use full sentences.
e. Comment also on how different Janet's numbers are from Tom's, if they are. Again, please use full sentences