4. Ch02 Financial Planning Exercise 7

Ch 02: End-of-chapter Problems - using Financial Statements and Budgets Back to Assignment Attempts 2 Keep the Highest 2 / 5 4. Ch02 Financial Planning Exercise 7 Chapter 2 Financial Planning Exercise 7 Funding a retirement goal Austin Miller wishes to have $200,000 in a retirement fund 25 years from now. He can create the retirement fund by making a single lump-sum deposit today. use next table to solve the following problems. a. If upon retirement in 25 years, Austin plans to invest $200,000 in a fund that earns what is the maximum annual withdrawal he can make over the following IS years? Round the answer to the nearest cent. Round PVA-factor to three decimal places. Calculate cur answer based on the PVA-factor. Calculate your answer based on the financial calculator. b. How much would Austin need to have on deposit at retirement in order to withdraw $45,000 annually over the IS years if the retirement fund earns Round the answer to the nearest cent. Round PVA-factor to three decimal places. Calculate your answer based on the PVA-factor. Calculate our answer based on the financial calculator. c. To achieve his annual withdrawal goal of $45,000 calculated in part b, how much more than the amount calculated in part a must Austin deposit today in an investment earning annual interest? Round PVA-factor to three decimal places. Round your answer to the nearest cent. If an amount is zero, enter "O". Grade it Now Save & Continue Continue without saving