This is a classic retirement problem. A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending goals.

A) Because your friend is planning ahead, the first withdrawal will take not take place until one year after she retires. She wants to make equal annual deposits into her account for her retirement fund. What amount will she need at her retirement date? Today? Year 30? Year 50? If she starts making these deposits in one year and makes her last deposit on the day, she retires she wantsif 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 at retirement? amount to save each year: today? Year 30? Suppose your friend has just inherited a large sum of money. rather than making equal annual payments, she has decided to make one lump sum deposit today to cover her retirement needs. What amount does she have to deposit today? Year 30? B) suppose your friends employer will contribute to the account each year as part of the companies 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 at retirement? value of employers contribution at retirement: today, year 30? value of trust fund at retirement: today, year 30? year 50? amount to save each year now: today, year 30?

Excel is a tool for solvins problems, but with many time value of money problems, you may still need to craw a time line. cetirement spending coals: Because your friend is planning ahead, the tisst 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. What amount will she need at her retirement date? Amount Needed at retirement date: Today Yr 30 Yr 50 Withdrawals at retirement? Amount to save each year: Today Y+30 Suppose your friend has just inherited a large sum of money. Rather than making equal annual payments, she has decided to make cne lump sum depout todyy to cover her rebirement needs, What amount does she have to deposit today? It sne starts makng these oeposits in one year ano makes ner iast aeposit on the day sne reures, wnat amount must sne oeposit annuairy to oe adie t withdrawals at retirement? Amount to save each year: Today Yr 30 Suppose your friend has just inherited a large sum of money. Rather than making equal annual payments, she has decided to make one lump sum dep retirement needs. What amount does she have to deposit today? Lump sum deposited today: Today Yr 30 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 trust several years from now. What amount must she deposit annually now to be able to make the desired withdrawals at retirement? Excel is a tool for solvins problems, but with many time value of money problems, you may still need to craw a time line. cetirement spending coals: Because your friend is planning ahead, the tisst 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. What amount will she need at her retirement date? Amount Needed at retirement date: Today Yr 30 Yr 50 Withdrawals at retirement? Amount to save each year: Today Y+30 Suppose your friend has just inherited a large sum of money. Rather than making equal annual payments, she has decided to make cne lump sum depout todyy to cover her rebirement needs, What amount does she have to deposit today? It sne starts makng these oeposits in one year ano makes ner iast aeposit on the day sne reures, wnat amount must sne oeposit annuairy to oe adie t withdrawals at retirement? Amount to save each year: Today Yr 30 Suppose your friend has just inherited a large sum of money. Rather than making equal annual payments, she has decided to make one lump sum dep retirement needs. What amount does she have to deposit today? Lump sum deposited today: Today Yr 30 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 trust several years from now. What amount must she deposit annually now to be able to make the desired withdrawals at retirement