EXCEL MASTER-IT! PROBLEM ix 20 This is a classic retirement problem. A friend is celebrating hier birthday and wants to start saving for her anticipated retirement Page 19 She has the following years to retirement and retirement spending goals Years until retirement 30 Amount to withdraw each year. $90,000 Years to withdraw in retirement: Interest rate: 8% Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual deposits into her account for her retirement fund, a. If she starts making these deposits in one year and makes her Inst deposit on the day she retires, what amount must she deposit annually to be able to make the desired withdrawals at retirement? Suppose your friend has just inherited a larpe sum of money. Rather than making equal annual payments, she has decided to make one lump sum deposit today to cover her retirement needs. What amount does she have to deposit today? e. Suppose your friend's employer will contribute to the nocount each year as part of the company's profit sharing plan. In addition, your friend expects a distribution from a family trust 20 years from now. What amount must she deposit annually now to be able to make the desired withdrawals at retirement? Employer's annual contribution: $1,500 Years until trust fund distribution Amount of trust fund distribution: $25,000 20