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Austin Miller wishes to have $900,000 in a retirement fund 30 years from now. He can create the retirement fund by making a single lump-sum
Austin Miller wishes to have $900,000 in a retirement fund 30 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 30 years, Austin plans to invest $900,000 in a fund that earns 7%, what is the maximum annual withdrawal he can make over the following 25 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 $40,000 annually over the 25 years if the retirement fund earns 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 $40,000 calculated in part b, how much more than the amount calculated in part a must Austin deposit today in an investment earning 7% annual interest? Round PVA-factor to three decimal places. Round your answer to the nearest cent. If an amount is zero, enter "o". $
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