Question: PVA formula, please Chapter 2 Financial Planning Exercise 7 Funding a retirement goal Austin Miller wishes to have $300,000 in a retirement fund 25 years
Chapter 2 Financial Planning Exercise 7 Funding a retirement goal Austin Miller wishes to have $300,000 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 $300,000 in a fund that earns 4%, what is the maximum annual withdrawal he can make over the following 15 years? Round the answer to the nearest cent. Round PVA-factor to three decimal places. Calculate your 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 $35,000 annually over the 15 years if the retirement fund earns 4%7 Round the answer to the nearest cent. Round PVA-factor to three decimal places. Calculate your answer based on the PVA-factor. $ Calculate your answer based on the financial calculator $ c. To achieve his annual withdrawal goal of $35,000 calculated in part b, how much more than the amount calculated in part a must Austin deposit today in an Investment eaming 4% annual interest? Round PVA-factor to three decimal places. Round your answer to the nearest cent. If an amount is zero, enter "0". $
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
