Question
Robin and Michael both turned 30 years old today. Currently, they have $5,000 saved towards their retirement. They plan on working until age 65 (t
Robin and Michael both turned 30 years old today. Currently, they have $5,000 saved towards their retirement. They plan on working until age 65 (t = 35) after which they plan on retiring. Their plan is to contribute a fixed amount to their retirement account at the end of each of the next 35 years. However, they plan to take a trip to celebrate their 50th birthdays and will withdraw $30,000 (t = 20) for that purpose, so they need to consider this withdrawal too. Their first contribution will occur in one year (t = 1), while the final contribution will occur on their 65th birthdays (t = 35). Once they retire, they plan on withdrawing $75,000 annually from their retirement account. (They realize that the purchasing power of $75,000 will decline each year with inflation.) The first retirement withdrawal will occur at age 66 (t = 36), while their 25th and final withdrawal will occur on their 90th birthdays (t = 60). After age 90, they expect to have nothing in their retirement account. The retirement account is expected to generate an annual return of 9.0%. How much will they need to contribute to their retirement account at the end of each of the next 35 years if they want to accomplish their goals?
can you set up the excel too?
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