Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz do my hand. thank you The following information is to be placed into the cells shown: Current salary Money desired per year if retirement

image text in transcribed
plz do my hand. thank you
The following information is to be placed into the cells shown: Current salary Money desired per year if retirement took place now Rate of salary growth as a decimal (ie. .025 for 2.5%/yr) Rate of inflation per year as a decimal Interest rate as a decimal during years 1-20 Interest rate as a decimal during years 21-40 Interest rate as a decimal during years 41-50 Interest rate as a decimal during years 51-60 A4 - $110,000 A5 - $95,000 A6 - 04 A7-03 A8 - 09 A9 - 08 A10 - 085 A11 - 065 This assignment will assume that you will work for 40 years, and are retired for 20 years. The first retirement withdrawal will be at the end of year 41. Deposits will be made at the end of each year from years 1-40. Withdrawals need to increase at the rate of inflation Part A. Determine the annual deposit required for years 1-40 if each deposit is the same. Complete the following table for years 1 through 60. Yr Beg Balance Interest Balance Deposit Withdrawal Salary % Salary End Part B. Determine the annual deposit required for years 1 40 if the amount deposited each year will increase at the same rate as the increase in salary. Complete a second table with the same columns as in part a

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions