ASSUMPTIONS:

--Inflation is expected to 3.0% for the rest of Duane and Amy's lives.

--Duane wants to retire in 25 years.

--Duane and Amy think that $78,000 Today is sufficient to meet their retirement needs (if they were to retire today).

--Duane and Amy are planning on a retirement window of 20 years total.

--The retirement account is expected to earn a RATE of 8.5% during the retirement time frame.

--The child will begin college in 15 years.

--College costs are inflating at 5% annually.

--The college savings account will earn 9% interest during college.

--Current cost for a year of college is $11,500.

--College will last 4 years (4 withdrawals).

--For Comparison, Duane and Amy would like to see TWO Target Values for their retirement and college accounts computed:

1--Based on the Annuity model (assume that their withdrawals will remain the same each year during retirement).

2--Based on the Growing Annuity model (assume that each withdrawal will be larger than the last, to offset inflation).

Cannot figure out the Yellow Blank part please help me TT

$ $ 78,000.00 3.00% 25.00 EDUCATION ACCOUNT TARGET VALUE Today's Cost of College 1 year (PV) Inflation Rate (RATE) Years until College (NPER) 11,500.00 5.00% 15.00 $ 163,314.68 INFLATED Cost of College at College Enrollment Date (FV) $ 23,907.67 31 RETIREMENT ACCOUNT TARGET VALUE 32 Today's Cost of Living (PV) 33 Inflation Rate (RATE) 34 Years until Retirement (NPER) 35 36 INFLATED Cost of Living at Retirement Date (FV) 37 38 Target Value (Annuity Model) 39 Annual Withdrawal (PMT) 40 Years During Retirement (NPER) 41 RATE Earned During Retirement (RATE) 42 43 Target Value (PV) on hand on day retire 44 45 Target Value (Growing Annuity Model) 46 First Withdrawal Amount (Year 1 of retirement) 47 Years During Retirement 48 Growth Rate (g) of Each Withdrawal vs. Last 49 RATE Earned During Retirement (RATE) Target Value (Annuity Model) Annual Withdrawal (PMT) Years During College (NPER) RATE Earned During College (RATE) 20.00 8.50% 4.00 9.00% $ 31,947.03 Target Value (PV) on hand on day college begins $ 16,936.80 Target Value (Growing Annuity Model) First Withdrawal Amount (Year 1 of college) Years During College Growth Rate (g) of Each Withdrawal vs. Last RATE Earned During College (RATE) 50 51 Target Value (PV of growing annuity) on day retire Target Value (PV of growing annuity) on day college begins 52 $ $ 78,000.00 3.00% 25.00 EDUCATION ACCOUNT TARGET VALUE Today's Cost of College 1 year (PV) Inflation Rate (RATE) Years until College (NPER) 11,500.00 5.00% 15.00 $ 163,314.68 INFLATED Cost of College at College Enrollment Date (FV) $ 23,907.67 31 RETIREMENT ACCOUNT TARGET VALUE 32 Today's Cost of Living (PV) 33 Inflation Rate (RATE) 34 Years until Retirement (NPER) 35 36 INFLATED Cost of Living at Retirement Date (FV) 37 38 Target Value (Annuity Model) 39 Annual Withdrawal (PMT) 40 Years During Retirement (NPER) 41 RATE Earned During Retirement (RATE) 42 43 Target Value (PV) on hand on day retire 44 45 Target Value (Growing Annuity Model) 46 First Withdrawal Amount (Year 1 of retirement) 47 Years During Retirement 48 Growth Rate (g) of Each Withdrawal vs. Last 49 RATE Earned During Retirement (RATE) Target Value (Annuity Model) Annual Withdrawal (PMT) Years During College (NPER) RATE Earned During College (RATE) 20.00 8.50% 4.00 9.00% $ 31,947.03 Target Value (PV) on hand on day college begins $ 16,936.80 Target Value (Growing Annuity Model) First Withdrawal Amount (Year 1 of college) Years During College Growth Rate (g) of Each Withdrawal vs. Last RATE Earned During College (RATE) 50 51 Target Value (PV of growing annuity) on day retire Target Value (PV of growing annuity) on day college begins 52