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2. You invest $12,000 a year in to a retirement fund starting at age 25 and continue to do so until the age of 55.
2. You invest $12,000 a year in to a retirement fund starting at age 25 and continue to do so until the age of 55. You also plan to increase the investment by $1000 each year starting when you are 37 ($13,000), 38 ($14,000) through age 55. You plan to retire at age 65 with $1,000,000 in your retirement account. a. Created the needed cash flow diagram b. What average annual interest rate (nearest 1%) must your retirement account produce? Do you think this interest rate is reasonable for your retirement planning? C. Is it reasonable to increase your contribution $1,000 a year starting at age 37 through age 55? What would your contribution be per year at age 55? d. What would happen if you retired at 60 instead of 65? Solve the problem using an Excell spreadsheet. 2. You invest $12,000 a year in to a retirement fund starting at age 25 and continue to do so until the age of 55. You also plan to increase the investment by $1000 each year starting when you are 37 ($13,000), 38 ($14,000) through age 55. You plan to retire at age 65 with $1,000,000 in your retirement account. a. Created the needed cash flow diagram b. What average annual interest rate (nearest 1%) must your retirement account produce? Do you think this interest rate is reasonable for your retirement planning? C. Is it reasonable to increase your contribution $1,000 a year starting at age 37 through age 55? What would your contribution be per year at age 55? d. What would happen if you retired at 60 instead of 65? Solve the problem using an Excell spreadsheet
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