W History Bookmarks Window Help livekutztown-my.sharepoint.com C D21 Inclusive Access - FUNDAMENTALS PERSONAL FIN Summer Course Notes PRO 185 - Google Docs Search (Option + Q) ices Review View Help Editing A" A B I U D Y Av AD ... The Future Value Factor for 15 years at a 4% rate of return comes out to be 1.801 Future Value = $75,000 x 1.801 = $135,075 This means that the $135,075 is less than the $214,000 that is required for a college education. It is not enough to meet the future costs. d. If you want to have $214,000 in 15 years for your child's college education, how much will you have to deposit at the end of each year in a fund at 4 percent to reach this goal? e. If you can earn 4 percent, how much will you have to save each year if you want to retire in 35 years with $1 million? The yearly savings = Amount desired in future / Future value annuity factor The future value annuity factor for 35 years at a 4% rate of return is 73.652 Yearly Savings = 1,000,000 divided by 73.652 - 13,577.3638 You would have to save approximately $13,577 each year to have $1 million at the time of retirement in 35 years. On 21 JUN 2 itv