Tim is 37 years old and would like to establish a retirement plan. He approaches a local financial consultancy where you work as an analyst. Your boss asks you to develop a spreadsheet model that could be used to assist Tim with his retirement planning. Your model should include the following input parameters: Current age: 37

years Current total retirement savings: $259,000

Annual rate of return on retirement savings: 4%

Current annual salary: $145,000

Expected annual percentage increase in salary: 2%

Percentage of annual salary contributed to retirement: 6%

Expected age of retirement: 65

Expected annual expenses after retirement (current dollars): $90,000

Rate of return on retirement savings after retirement: 3%

Income tax rate post-retirement: 15%

(This rate applies to withdrawals from the retirement funds post-retirement) Assume that Tims employer contributes 6% of Tims salary to his retirement fund. Tim can make an additional annual contribution to his retirement fund before taxes (tax-free) up to a contribution of $16,000. Assume that he contributes $6,000 per year. Also, assume an inflation rate of 2%. (Inflation applies to annual expenses) A) Your spreadsheet model should provide the accumulated savings at the onset of retirement as well as the age at which funds will be depleted (given assumptions on the input parameters). B) As a feature of your spreadsheet model: Build a data table to demonstrate the sensitivity of the age at which funds will be depleted to Tim's additional pre-tax contributions. ($1000 to $16000) Build a data table to demonstrate the sensitivity of the age at which funds will be depleted to Tim's Expected annual percentage increase in salary. Similarly, consider other factors you think might be important. Develop a report for Tim outlining the factors that will have the greatest impact on his retirement.