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Financial Planning Exercise 10 Funding a retirement goal Grayson Harris wishes to have $1.6 million 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 10 percent on his investments, how much would Grayson have to 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 8 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, Grayson plans to invest the $1.6 million in a fund that earns 8 percent, 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. $ c. How much would Grayson need to have on deposit at retirement to annually withdraw $165,000 over the 15 years if the retirement fund earns 8 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 $165,000 calculated in part c, how much more than the amount calculated in part a must Grayson deposit today in an investment earning 8 percent annual interest? Round your answer to the nearest cent. If an amount is zero, enter "0". $

Financial Planning Exercise 10 Funding a retirement goal Grayson Harris wishes to have $1.6 million 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 10 percent on his investments, how much would Grayson have to 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 8 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, Grayson plans to invest the $1.6 million in a fund that earns 8 percent, 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. $ c. How much would Grayson need to have on deposit at retirement to annually withdraw $165,000 over the 15 years if the retirement fund earns 8 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 $165,000 calculated in part c, how much more than the amount calculated in part a must Grayson deposit today in an investment earning 8 percent annual interest? Round your answer to the nearest cent. If an amount is zero, enter "0". $

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Financial Planning Exercise 10 Funding a retirement goal Grayson Harris wishes to have $1.6 million 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 10 percent on his investments, how much would Grayson have to 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 8 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, Grayson plans to invest the $1.6 million in a fund that earns 8 percent, 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. $ c. How much would Grayson need to have on deposit at retirement to annually withdraw $165,000 over the 15 years if the retirement fund earns 8 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 $165,000 calculated in part c, how much more than the amount calculated in part a must Grayson deposit today in an investment earning 8 percent annual interest? Round your answer to the nearest cent. If an amount is zero, enter "0". $
Transcribed Image Text:Financial Planning Exercise 10 Funding a retirement goal Grayson Harris wishes to have $1.6 million 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 10 percent on his investments, how much would Grayson have to 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 8 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, Grayson plans to invest the $1.6 million in a fund that earns 8 percent, 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. $ c. How much would Grayson need to have on deposit at retirement to annually withdraw $165,000 over the 15 years if the retirement fund earns 8 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 $165,000 calculated in part c, how much more than the amount calculated in part a must Grayson deposit today in an investment earning 8 percent annual interest? Round your answer to the nearest cent. If an amount is zero, enter "0". $
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