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1 Main Menu Interest Rate 3 Retirement Savings Model 5 Initial Savings 6 Interest Rate 7 Monthly Deposit 8 Current Age 9 Retirement Age 10
1 Main Menu Interest Rate 3 Retirement Savings Model 5 Initial Savings 6 Interest Rate 7 Monthly Deposit 8 Current Age 9 Retirement Age 10 Total Payment Periods 11 " 12 Amount at Retirement $5,000.00 3.5% $500.00 19 70 Retirement Age 20 21 22 23 On the Review1 worksheet you have a partially created retirement model. You have $5,000 to deposit into the re- tirement account today and will make monthly deposits of $500 until you retire. The estimated interest rate on the account is 3.5%. 1. Examine the retirement investment model to determine which cells are the inputs, which cell the decision variable, which cell the uncertain variable, and which cells the outputs. 2. Apply a cell style of your choosing to each different type of variable. 3. In cell B8, enter your current age. 4. In cell B9, enter your desired retirement age. 5. In cell B10, enter a formula to calculate the number of monthly deposits you will make until you reach your desired retirement age. 6. In cell B12, use the FV function to calculate the amount of money that will be available in the account at your desired retirement age. 7. In cells F3:L3, enter possible interest rates for the retirement account, starting with 2.5% and ending with 5.5% in increments of 0.5%. Apply the same cell style to these cells as you did to B6. 8. In cells E4:E14, enter possible retirement ages, starting with 55 and ending with 75 in increments of 2. Apply the same cell style to these cells as you did B9. 9. In cell E3, reference the output cell that calculates the future value of the retirement account. Add a custom format to the cell so that the text Retirement Savings is displayed. 10. Complete the two-variable data table. If needed, format the values inside the table as Currency. 11. If the actual interest rate earned on the account is 3.5%, what is the earliest age at which you can retire and have at least $1,000,000 in the account
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