Question 1:

George is 35 and decides to invest a portion of his income for his retirement. He plans to retire when he is 60 years old. He can invest between $3000 - $12000 per year. The annual rate of return for his

investments could vary between 2% to 12%. Using a two-way data table, calculate the size of his

retirement fund at the time of retirement for different combinations of investments and rate of returns.

(When creating the data table, you can use $1000 increments for investments and one percent

increments for the rate of return)

Note:

You need to create your own Excel sheet to solve this problem.

You can use the FV() function in Excel to calculate the future value of investment (Link)

Follow the steps as shown in the handout. Remember, when you set up inputs, you can use an

example with any numbers.

He starts to invest at 35 and retires at 60 (So the total period is 25 years)