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Solve using excel and show the formulas used in excel Because your friend is planning ahead, the first withdrawal will not take place until one
Solve using excel and show the formulas used in excel
Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual deposits into her account for her retirement fund. a. If she starts making these deposits in one year and makes her last deposit on the day she retires, what amount must she deposit annually to be able to make the desired withdrawals in retirement? b. Suppose your friend has inherited a large sum of money. Rather than making equal annual payments, she has decided to make one lumpsum deposit today to cover her retirement needs. What amount does she have to deposit today? c. Suppose your friend's employer will contribute to the account each year as part of the company's profit-sharing plan. In addition, your friend expects a distribution from a family trust several years from now. What amount must she deposit annually now to be able to make the desired withdrawals in retirement? The details are: \begin{tabular}{|lr|} \hline Employer's annual contribution & $1,500 \\ Years until trust fund distribution & 20 \\ Amount of trust fund distribution & $25,000 \\ \hline \end{tabular}Step by Step Solution
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