Question
Funding a retirement goal Table is down below!! A. Austin Miller wishes to have $500,000 in a retirement fund 30 years from now. He can
Funding a retirement goal Table is down below!!
A. Austin Miller wishes to have $500,000 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 (down below) to solve the following problems. If upon retirement in 30 years, Austin plans to invest $500,000 in a fund that earns 8%, 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 $45,000 annually over the 15 years if the retirement fund earns 8%? 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 $45,000 calculated in part b, how much more than the amount calculated in part a must Austin deposit today in an investment earning 8% annual interest? 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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