RETIREMENT PLANNER CASE STUDY This assignment involves developing a spreadsheet to determine how much will need to be deposited into an account to meet retirement income objectives. The following information is to be placed into the cells shown: A 90,000. -80,000 5.545 0.045. 0.045. 0.045. -0.04. 0.03. 0.02 0.09- -0.085 Current salary Money desired per year if retirement took place now Rate of salary growth as a decimal for years 1-10 Rate of salary growth as a decimal for years 11-20 Rate of salary growth as a decimal for years 21-30 Rate of salary growth as a decimal for years 31-40 Rate of inflation per year as a decimal years 1-20 Rate of inflation per year as a decimal years 21-40 Rate of inflation per year as a decimal years 41-65 Interest rate as a decimal during first 25 working years - Interest rate as a decimal during last 15 working years Interest rate as a decimal during first 15 retirement years - Interest rate as a decimal during last 10 retirement years. 0.080. -0.075. Yr A4 A5 A6 -A7 <004 A8 A9- -A10 0.07 X 0.03 A120-2AFI 111002 A11 A13 19/0, www aps 1145 # HH fbx 0.035 A14oog A15 A16 to. B 901000 80,000 0.045 0.04 0.035 0.03 0.04 0.03 0.02 0.09 0.085 0.080 -0.075 This assignment will assume that you will work for 40 years, and are retired for 25 years. The first retirement withdrawal will be at the end of year 41. Deposits will be made at the end of each year from years 1-40. Withdrawals need to increase at the rate of inflation. Part A. Determine the annual deposit required for years 1-40 if each deposit is the same. Complete the following table for years 1 through 65. Beg Balance Interest Deposit Withdrawal Salary % Salary End Balance Part B. Determine the annual deposit required for years 1-40 if the amount deposited each year will increase at the same rate as the increase in salary. Complete a second table with the same columns as in part a. Part C. Assume that the salary annual salary growth rate, the annual inflation rate, and the annual investment rate are now normally distributed random variables, with a mean as given and a standard deviation equal to 15% of the mean. These variables will now change each year. Redo part A. Determine how much extra will be needed to deposit each year to be 90% sure you will meet your retirement objective. Complete a new table for this part. Part D. For part C assume the deposit could be adjusted each year and the withdrawals can be adjusted each year to make the balance come out to zero. Construct a sheet that does this as the simulation trials proceed. Create a forecast cell that keeps track of the total amount that will need to be deposited and another forecast cell for the total amount of money withdrawn for each cycle. Part E. Propose a modification that you would make to the retirement planner to make it more realistic to your particular retirement scenario. Discuss in detail what this modification would be and then implement the modification into the Excel sheet. The information in cells A4-A16 will be put into the spreadsheet only once. If you use different sheets for the parts you will need to carry the data into those sheets. This assignment is to be done using Excel functions. No macros are allowed. Use of Solver/Goal Seek is not allowed. This case study is due on