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by using Excel plz! 3. You are planning to retire in 35 years and want to have accumulated enough money to provide an annual retirement
by using Excel plz!
3. You are planning to retire in 35 years and want to have accumulated enough money to provide an annual retirement income of $80,000 for 25 years. = = (a) Assuming the first $80,000 is paid one year after you retire, calculate the lump sum needed on the day you retire to provide this annual income for 25 years. Use annual interest rates i = 3%, 4%, 5%, 6%, 7%, 8%, 9%, and 10%. (2 marks) (b) For your answer in (a) where i = 3%, calculate the annual deposit needed for 35 years to achieve the required lump sum, assuming annual interest rates i = 3%, 4%, 5%, 6%, 7%, 8%, 9% and 10%. Assume the deposits are made at the end of each year (final deposit is made on the day you retire). Repeat for the other 7 lump sums that you calculated in (a). (3 marks) (c) For the i= 7% scenario only (the scenario where deposits earned 7% and withdrawals earned 7%), calculate the value of your savings account at the end of each year for the full 60 year period. Start with a balance of $0 at time 0, and then calculate the balance at the end of each year until time 60 (where the balance should be $0). Then graph the results. (3 + 3 = 6 marks)Step by Step Solution
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