. . . . Question Two-Retirement Investment: Set up a spread sheet to analyze your investing for retirement. The investments will be monthly. Assume that the amount of the monthly investment can vary, but it can only be changed at the first of every year. Assume that the length of time you will save will be for 40 years. Assume that the interest rate charged on the loan can be varied. Present an example with the following conditions: Your initial investment per month is $400 o You will increase the amount invested by $20 a month starting with the fifth year and increasing it by $20 at the beginning of all subsequent years o Annual investment rate is 4% compounded monthly for years 0 to 10 o Annual interest rate will increase to 6% compounded monthly starting in year 11 Provide a cash flow diagram for this scenario. How much will you have in your retirement account after 40 years? Upon retirement, if the 6% interest rate continues, how much can you withdraw monthly without touching the corpus (the amount of money saved)? If the 6% interest rate continues, how much can you withdraw monthly for 30 years depleting the corpus to zero? Label the spread sheet clearly and organize it so it can be printed and easily read. Provide a written summary explaining the construction of your spread sheet and the meaning of the results. . . . . . . . Question Two-Retirement Investment: Set up a spread sheet to analyze your investing for retirement. The investments will be monthly. Assume that the amount of the monthly investment can vary, but it can only be changed at the first of every year. Assume that the length of time you will save will be for 40 years. Assume that the interest rate charged on the loan can be varied. Present an example with the following conditions: Your initial investment per month is $400 o You will increase the amount invested by $20 a month starting with the fifth year and increasing it by $20 at the beginning of all subsequent years o Annual investment rate is 4% compounded monthly for years 0 to 10 o Annual interest rate will increase to 6% compounded monthly starting in year 11 Provide a cash flow diagram for this scenario. How much will you have in your retirement account after 40 years? Upon retirement, if the 6% interest rate continues, how much can you withdraw monthly without touching the corpus (the amount of money saved)? If the 6% interest rate continues, how much can you withdraw monthly for 30 years depleting the corpus to zero? Label the spread sheet clearly and organize it so it can be printed and easily read. Provide a written summary explaining the construction of your spread sheet and the meaning of the results
