5ytyt

Funding Jill Morans Retirement Annuity Sunrise Industries wishes to stash funds to provide a retirement rente for its vice president of research, Jill Moran. Ms Moran, by contract, will retire at the curio of exactly 12 years. Upon retirement, she is entitled to receive an annual end- of-year payment of $42,000 for exactly 20 years. If she dies prior to the end of the 20-year period, the annual payments will pass to her heirs.During the 12-year assemblage period, Sunrise wishes to fund the annuity by making equal, annual, end of the year deposits into an account earning 9% interest. Once the 20-year distribution period begins, Sunrise plans to move the gather upd monies into an account earning a guaranteed 12% per year, At the end of the distribution period, the account balance will equal zero. Note that the first deposit will be made at the end of year 1 and that the first distribution payment will be received at the end of year 13. Please answer the questions listed below. . D raw a time line depicting all of the cash flows associated with Sunrises view of the retirement annuity. 2. How large a sum must Sunrise accumulate b the end of year 12 to provide the 20-year, $42,000 annuity? 3. How large must Sunrises equal, annual, end-of-year deposits into the account be over the 12-year accumulation period to fund fully Ms. Morans retirement? 4. How much would Sunrise have to deposit annually during the accumulation period if it could earn 10% quite a than 9% during the accumulation period?