Get in groups of two. Solve the following problem in Excel. Write a report in the same format (Executive Summary and Technical Report) as before. Again the purpose of the report is to convince another engineer that your analysis is correct and that your advice should be implemented. You just graduated from college and are 25 years old and employed at a job that pays $60,000/year. You enjoy your job and will never change companies. Furthermore, the company will give you a 3% raise each year. The company has a 401k program, which contributes a total of 10% of your salary into a retirement account that you manage. For the first 5 years, you will be able to save an additional $1,000 a year. After that you will get married, have kids and are grateful just to make ends meet. Base Problem: Your goal is to determine how soon you can retire. You can assume that you will die at age 80. You need to be able to withdraw from your retirement account the equivalent worth of $40,000 in today's dollar. Assume that the inflation rate is 2.0% and that you invest all money into the stock market, which earns 7% annually. Four other problems: Answer the following four problems. Always return to the base problem and then change one assumption. Record the answer and include these answers in your report. Please turn in the base problem excel sheet. You do not need to hand in the other 3 spreadsheets. Comments should be made regarding what is most helpful for a retirement in your report. You should include a personal recommendation. What if the stock market interest rate was 8%? What if inflation was 3%? What if you made $70,000 to start? Get in groups of two. Solve the following problem in Excel. Write a report in the same format (Executive Summary and Technical Report) as before. Again the purpose of the report is to convince another engineer that your analysis is correct and that your advice should be implemented. You just graduated from college and are 25 years old and employed at a job that pays $60,000/year. You enjoy your job and will never change companies. Furthermore, the company will give you a 3% raise each year. The company has a 401k program, which contributes a total of 10% of your salary into a retirement account that you manage. For the first 5 years, you will be able to save an additional $1,000 a year. After that you will get married, have kids and are grateful just to make ends meet. Base Problem: Your goal is to determine how soon you can retire. You can assume that you will die at age 80. You need to be able to withdraw from your retirement account the equivalent worth of $40,000 in today's dollar. Assume that the inflation rate is 2.0% and that you invest all money into the stock market, which earns 7% annually. Four other problems: Answer the following four problems. Always return to the base problem and then change one assumption. Record the answer and include these answers in your report. Please turn in the base problem excel sheet. You do not need to hand in the other 3 spreadsheets. Comments should be made regarding what is most helpful for a retirement in your report. You should include a personal recommendation. What if the stock market interest rate was 8%? What if inflation was 3%? What if you made $70,000 to start
