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# eBook Chapter 2 Financial Planning Exercise 7 Funding a retirement goal Austin Miller wishes to have \$400,000 in a retirement fund 25 years from now. He can create the retirement fund by making a

eBook

Chapter 2
Financial Planning Exercise 7
Funding a retirement goal

Austin Miller wishes to have \$400,000 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.

1. If upon retirement in 25 years, Austin plans to invest \$400,000 in a fund that earns 8%, 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.

\$

\$

2.
3. How much would Austin need to have on deposit at retirement in order to withdraw \$45,000 annually over the 20 years if the retirement fund earns 8%? Round the answer to the nearest cent. Round PVA-factor to three decimal places.

\$