Suppose you plan to retire in 10 years. You want to be able to withdraw $100,000 per year during your retirement. You anticipate that you will live 15 years past retirement. You currently have a $400,000 balance in your retirement account. You have access to an account that earns 5% per year. How much do you need to deposit each year between now and when you retire to accomplish your retirement goal? Create a table showing the account balance each year for the next 25 years and use goal seek to find your answer. Show that this gives the same answer as using our time-value of money formulas.

Suppose you plan to retire in 10 years. You want to be able to withdraw $100,000 per year during your retirement. You anticipate that you will live 15 years past retirement. You currently have a $400,000 balance in your retirement account. You have access to an account that earns 5% per year. How much do you need to deposit each year between now and when you retire to accomplish your retirement goal? Create a table showing the account balance each year for the next 25 years and use goal seek to find your answer. Show that this gives the same answer as using our time-value of money formulas