Chris Jones wishes to have $200,000 in a retirement fund 30 years from now. He can...

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Finance

Chris Jones wishes to have $200,000 in a retirement fund 30years from now. He can create the retirement fund by making asingle lump-sum deposit today. Use next table tosolve the following problems.
If he can earn 8 percent on his investments, how much mustChris deposit today to create the retirement fund? Round PV-factorto three decimal places. Round your answer to the nearestcent.
Calculate your answer based on the PV-factor.
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Calculate your answer based on the financial calculator.
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If he can earn only 6 percent on his investments? RoundPV-factor to three decimal places. Round your answer to the nearestcent.
Calculate your answer based on the PV-factor.
$

Calculate your answer based on the financial calculator.
$

If upon retirement in 30 years Chris plans to invest the$200,000 in a fund that earns 6%, what is the maximum annualwithdrawal he can make over the following 20 years? Round theanswer to the nearest cent. Round PVA-factor to three decimalplaces.
Calculate your answer based on the PVA-factor.
$

Calculate your answer based on the financial calculator.
$

How much would Chris need to have on deposit at retirement toannually withdraw $35,000 over the 20 years if the retirement fundearns 6%? Round the answer to the nearest cent. Round PVA-factor tothree decimal places.
Calculate your answer based on the PVA-factor.
$

Calculate your answer based on the financial calculator.
$

To achieve his annual withdrawal goal of $35,000 calculated inpart c, how much more than the amount calculatedin part a must Chris deposit today in aninvestment earning 6% annual interest? Round PVA-factor to threedecimal places. Round your answer to the nearest cent. If an amountis zero, enter "0".
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Answer & Explanation Solved by verified expert

3.8 Ratings (583 Votes)

PV tablea FV 200000Time till retirement 30 yearsr 8 percent on his investmentsWe need to calculate the PV that will result in FV of 200000 in30 years at 8 compoundingrequired PV factor is 009934Formula for required FVor b Calculate your answer based on the financial calculatorInputs for Financial calculatorPMT0IY 008FV 200000T30CPT PVIn the financial calculator the PV value will be negativebecause it is an outflow which will result in an outflow of 200000 8 after 30 yearsFV 200000Time till See Answer

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Chris Jones wishes to have $200,000 in a retirement fund 30years from now. He can create the retirement fund by making asingle lump-sum deposit today. Use next table tosolve the following problems.If he can earn 8 percent on his investments, how much mustChris deposit today to create the retirement fund? Round PV-factorto three decimal places. Round your answer to the nearestcent.Calculate your answer based on the PV-factor.$ Calculate your answer based on the financial calculator.$ If he can earn only 6 percent on his investments? RoundPV-factor to three decimal places. Round your answer to the nearestcent.Calculate your answer based on the PV-factor.$ Calculate your answer based on the financial calculator.$ If upon retirement in 30 years Chris plans to invest the$200,000 in a fund that earns 6%, what is the maximum annualwithdrawal he can make over the following 20 years? Round theanswer to the nearest cent. Round PVA-factor to three decimalplaces.Calculate your answer based on the PVA-factor.$ Calculate your answer based on the financial calculator.$ How much would Chris need to have on deposit at retirement toannually withdraw $35,000 over the 20 years if the retirement fundearns 6%? Round the answer to the nearest cent. Round PVA-factor tothree decimal places.Calculate your answer based on the PVA-factor.$ Calculate your answer based on the financial calculator.$ To achieve his annual withdrawal goal of $35,000 calculated inpart c, how much more than the amount calculatedin part a must Chris deposit today in aninvestment earning 6% annual interest? Round PVA-factor to threedecimal places. Round your answer to the nearest cent. If an amountis zero, enter "0".$