Quesiton 1. You are currently 40 years old and intend to retire at age 60. To make your retirement easier, you intend to start a retirement account. At the beginning of each of years, you will deposit some money to your retirement account till your retire. You expect the account will earn 7% per year. After retirement at age 60, you want to withdraw $10,000 from your retirement account at the end of each year for 10 years. How much money should you plan to deposit in your retirement each year?

Requirement: Use (1) Solver or Goal Seek, and (2) PV and PMT function to solve for annual deposit. Use snipping tool to screenshot the dialog windows of Solver and Goal Seek with the appropriate parameters. Please scoll down the sheet for the second part of the question.

Retirement Problem Interest Annual Deposit Annual withdrawl Quesiton 1 You are currently 40 years olc and interd to retire at age 60. To make your retiremente asier, you intere to start a retirement account. At the beginning of each of years you wilcepositsome money to your retirement account till your retre. You extect the account will earn 2% perycar. After retirement at age you want ta withdraww $10.000 from your retirementaccountat the end of each year for 10 yeas. How much monuyshould you plante deposit in your retiremerteach year? Ape Account Balance Bezinninel Deposit 1 Beaning Interest Earned for the vear Withcraw (End Account Total (End D 1 2 Requirement: Use 11) Solveror Goal Seek ardiz) Pvard I'Mi function to solve for annual deposit. Lisesi pirgtorl to screenshot the dialog windows of Salver and Gaal serk with the appropriate parameters. Please coll down the sheet for the second part of the question. Begonine of Year End of Year 40 1 41 7 3 43 4 44 5 G 46 7 47 3 46 9 3 4 5 6 7 10 19 50 51 11 12 5 10 11 22 33 42 1.3 14 15 16 17 13 19 43 54 55 56 57 50 59 50 51 12 53 14 GS 15 10 17 18 19 20 21 23 20 21 22 23 24 25 26 27 28 66 23 24 25 26 27 28 29 67 69 69 30 Instead of using Selver, as Planc. PMT to solve farannual deposit: annual withdraw Interest rate The key is that the future va ve of first 20 years'ceposits (annu ty cuel at the end of year 20 is the same as the present value of the 20 ears withcrawlor nary annuity at the end of year 20 First solve for present value of all the withdrawals usine P function PV The use PMI to salve for the annual deposit PM