10. Greg Fredericks wishes to have $800,000 in a retirement fund 20 years from now.He can create the retirement fund by making a single lump-sum deposit today.

a. If he can earn 6% on his investments, how much must Greg deposit today to create the retirement fund?$272,384. If he can earn only 4% on his investments?$392,290. Compare and discuss the results of your calculations.This is a great example of how important the rate of return is on investments and that he will need to invest ~$120,000 less if that rate is 2% higher.

b. If, upon retirement in 20 years, Greg plans to invest the $800000 in a fund that earns 4%, what is the max annual withdrawal he can make over the following 15 years? $71,953

c. How much would Greg need to have on deposit at retirement to annually withdraw $35,000 over the 15 years if the retirement fund earns 4%? $389,144

d. To achieve his annual withdrawal goal of $35,000 calculated in part c, how much more than the amount calculated in part a must Greg deposit today in an investment earning 4% annual increase?

Answer to part d