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build an excel sheet with solutions Question: This is example 5 from the class notes (see pdf notes) Develop a spreadsheet model to determine the
build an excel sheet with solutions
Question: This is example 5 from the class notes (see pdf notes) Develop a spreadsheet model to determine the total savings the individual will have at age 50. Develop the model by setting up the variables in columns, the first variable being age and the last column being savings at that age. Use as many interim columns/variables as you need in order to make the calculations very transparent. (do not assume that there are only 3 interim columns). A skeleton has been provided to you. You may erase the skeleton to begin your model construction Note that the annual return only applies on monies that have been accumulated up until the end of the previous year, but not on the current year's contributions.
Start work at age 22, earning $50,000 per year.
Expect a salary increase of 3% per year.
Required to contribute 8% of annual salary into the retirement plan.
Employer contributes 35% of that amount.
Expect an annual return of 6% on the portfolio.
Model the savings in the retirement plan at age 50 for this employee
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