Problem #$1$

You have decided to save at least $$50$ every month and put it towards your retirement in $30$ years. You are considering investing in the stock market, but you are not sure of the risk, so you decide to compare it to not investing. The spreadsheet has the no investment formula, and you will need to use the FV function for the investment formula. Create a one$-$way data table and two$-$way data table on the same worksheet to compare the following scenarios. a$.$ Create a one$-$way data table on the same worksheet to show how changes in monthly investment $($from $$50$ to

$$500$ in increments of $$50)$ affect your retirement for both not investing and investing in the stock market.

Rename the title of the columns to $"$No Investment" and "With Investment" accordingly. From your one$-$way

table, at what monthly deposit does the $"$No$-$investment "retirement amount become just greater than

$$140,000?$

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 $$50$ to $$500$ in increments of $$50)$ affect your retirement when invested in the stock market.

What is your investment retirement account value if your monthly deposit$=$ $$200$ and Rate of Return $=4\%?$

c$.$ Assuming your rate of return is $8\%,$ what is the lowest monthly payment that would ensure you retire with over

$$1M?$ Change the values for rate of return, and then use Goal Seek on "the Value at Retirement if money

Invested" to answer the question.

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? Change the values for years and rate of

return, and then use Goal Seek on "the Value at Retirement if money Invested" to answer the question.Retirement Calculator

Monthly Deposit

Number of Years until Retirement

Annual Rate of Return $($Stock Market Invest

Value at Retirment if No$-$Investment

Value at Retirment $($FV$)$ if money Invested

$($add minus sign before your formula$)$