MUST SHOW WORK ON EXCEL

Suppose you wish to retire 38 years from today. You determined that you will need $220,000 per year after you retire, with the first retirement funds withdrawn one year from the day you retire and that you will need to make 30 such withdrawals. Assuming that you can earn 5% per year on your retirement funds.

a) How much must you deposit in an account today (lump sum), so that you may have enough funds for retirement?

Rework question A) assuming you can earn 6% on your funds until the day you retire then will be able to earn only 5% thereafter.

Rework question A) again, assuming you want the 220,000 per year withdrawals to last forever, with your first withdrawal one year after your retire and the interest rate is 5%