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Problem #1 You have decided to save at least $100 every month and put it towards your retirement in 40 years. You are considering investing
Problem #1 You have decided to save at least $100 every month and put it towards your retirement in 40 years. You are considering investing in the stock market, but you are not sure of the risk, so you decide to compare it to not investing. The spreadsheet has the no investment formula, and you will need to use the FV function for the investment formula. Create a one-way data table and two-way data table to compare the following scenarios. a. Create a one-way data table to show how changes in monthly investment (from $100 to $1000 in increments of $100) affect your retirement for both not investing and investing in the stock market. b. Create a two-way data table to show how various rates of return (1% to 10% in increments of 1% and monthly investments from $100 to $1000 in increments of $100) affect your retirement when invested in the stock market. C. Change the values for rate of return, and then use Goal Seek to answer the question. d. Change the values for years and rate of return, and then use Goal Seek to answer the question. B B A 1 Retirement Calculator 2 Monthly Deposit 3 Number of Years until Retirement 4 Annual Rate of Return (Stock Market Investing) 5 Value at Retirment if No-Investment Value at Retirment (FV) if money Invested (add 6 minus sign before your formula) $100 40 4% 48,000 $ Problem #1: Using the appropriate data table one-variable for part a, and two-variable for part b, answer the questions. a. From your one-way table, at what monthly deposit does the "No-investment "retirement amount become greater than $300,000? b. What is your investment retirement account value if your monthly deposit= $400 and Rate of Return = 6%? C. Assuming your rate of return is 8%, what is the lowest monthly payment that would ensure you retire with over $1M? d. If your number of years until retirement increases to 50 and the rate of return drops down to 4%, what monthly deposit would you need to have enough for your $15M vacation home? Problem #1 You have decided to save at least $100 every month and put it towards your retirement in 40 years. You are considering investing in the stock market, but you are not sure of the risk, so you decide to compare it to not investing. The spreadsheet has the no investment formula, and you will need to use the FV function for the investment formula. Create a one-way data table and two-way data table to compare the following scenarios. a. Create a one-way data table to show how changes in monthly investment (from $100 to $1000 in increments of $100) affect your retirement for both not investing and investing in the stock market. b. Create a two-way data table to show how various rates of return (1% to 10% in increments of 1% and monthly investments from $100 to $1000 in increments of $100) affect your retirement when invested in the stock market. C. Change the values for rate of return, and then use Goal Seek to answer the question. d. Change the values for years and rate of return, and then use Goal Seek to answer the question. B B A 1 Retirement Calculator 2 Monthly Deposit 3 Number of Years until Retirement 4 Annual Rate of Return (Stock Market Investing) 5 Value at Retirment if No-Investment Value at Retirment (FV) if money Invested (add 6 minus sign before your formula) $100 40 4% 48,000 $ Problem #1: Using the appropriate data table one-variable for part a, and two-variable for part b, answer the questions. a. From your one-way table, at what monthly deposit does the "No-investment "retirement amount become greater than $300,000? b. What is your investment retirement account value if your monthly deposit= $400 and Rate of Return = 6%? C. Assuming your rate of return is 8%, what is the lowest monthly payment that would ensure you retire with over $1M? d. If your number of years until retirement increases to 50 and the rate of return drops down to 4%, what monthly deposit would you need to have enough for your $15M vacation home
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