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Connor Ward wishes to have $1,000,000 in a retirement fund 30 years from now. He can create the retirement fund by making a single lump-sum
Connor Ward wishes to have $1,000,000 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 he can earn 9 percent on his investments, how much must Connor deposit today to create the retirement fund? Round PV-factor to three decimal places. Round your answer to the nearest cent. Calculate your answer based on the PV-factor. $ $ Calculate your answer based on the financial calculator. If he can earn only 7 percent on his investments? Round PV-factor to three decimal places. Round your answer to the nearest cent. Calculate your answer based on the PV-factor. Calculate your answer based on the financial calculator. $ b. If, upon retirement in 30 years, Connor plans to invest the $1,000,000 in a fund that earns 7 percent, what is the maximum annual withdrawal he can make over the following 20 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. $ c. How much would Connor need to have on deposit at retirement to annually withdraw $30,000 over the 20 years if the retirement fund earns 7 percent? 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. $ d. To achieve his annual withdrawal goal of $30,000 calculated in part c, how much more than the amount calculated in part a must Connor deposit today in an investment earning 7 percent annual interest? Assume that Connor starts withdrawing funds only after his retirement. Round PVA-factor to three decimal places. Round your answer to the nearest cent. If an amount is zero, enter "0". $
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