Question
PLEASE can you use excel ts your 31st birthday today and you want to start saving for your anticipated retirement at age 65. You want
PLEASE can you use excel
ts your 31st birthday today and you want to start saving for your anticipated retirement at age 65. You want to be able to withdraw $135,000 from your savings account on each birthday for 15 years following your retirement; the first withdrawal will be on your 66th birthday. You intend to invest in the local credit union, which offers a 7 percent APR. You want to make equal annual payments on each birthday into the account established at the credit union for the retirement fund.
Questions:
- If you start making these deposits on your 31st birthday and continue to make deposits until you are 65 (the last deposit will be on your 65th birthday), what amount must you deposit annually to be able to make the desired withdrawals at retirement?
- Suppose you just inherited a large sum of money. Rather than making equal annual payments, you want to make one lump sum payment on your 31st birthday to cover your retirement needs. What amount do you have to deposit?
Input | ||
Current age | ||
Retirement age | ||
Number of years until retirement | ||
Interest rate (%) | ||
Annual withdrawal ($) | ||
Number of years to withdraw | ||
Calculation & Output | ||
Question 7 | ||
Present value of withdrawals at age 65 | ||
Annual deposit until retirement | ||
Question 8 | ||
Present value of lump sum |
if explained well and if the table is filled out two questions answered, I will make sure to thumbs up! Thank you
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started