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Using a Future Value Cash Flow Table to Analyze a Safe Plan Analyze the following scenario by using Excel to calculate a Future Value cash

Using a Future Value Cash Flow Table to Analyze a Safe Plan
Analyze the following scenario by using Excel to calculate a Future Value cash flow
table to provide answers to the questions posed. In the PDF containing your
answers, be sure to paste in copies of the relevant Excel tables you used to
determine your answers.
Lets assume you want to generate the required $83,159.79 per year in retirement
by switching over your retirementsavingsinto a very safe 4% interest yield account
and that you only withdraw the interest to live on (i.e. you never deplete the
balance of the account and can thus be secure no matter how long you live and
also can leave it to your children, etc.). You would need to amass a final account
value by the time you retire and transition it to the 4% yielding safe account of
$83,159.79/0.04= $2,078,994.75 to generate that much interest to live on for the
rest of your life. While you are working, lets assume you use a moderate to
aggressive risk investment account that can generate 7% interest per year on your
savings.
A. If you startsaving the same amount each and every year when you start your
job by saving each year and making your first deposit on your 23rd birthday
(i.e. you save up during the year from age 22 to age 23 and place your deposit
in the bank at the beginning of each yearstarting at age 23), how much must
you save each year to provide the needed income for retirement? Again,
assume you work the year you are 65 and retire right at the end of that year,
so you do not make a yearly deposit into your retirement account at the end
of that year (i.e. the start of your age 66 year) and instead use any money
you saved the year your are turning 65 to make your retirement transition.
So your last retirement deposit will come at the beginning of your age 65
year from money you save the previous year and will only have one year to
accrue interest before you have to convert your entire account over to the safe 4% yield interest account.
Please explain the answer briefly with all values mentioned in excel.
image text in transcribed
Future Value Your answer in your Excel table should look something Perde Ben of a Frame for Each Cash Flow! Aconditionat 23 24 25 25 27 2 25 30 31 22 33 34 35 30 37 3 30 30 31 42 43 44 45 45 47 41 50 51 32 53 54 55 50 SB 59 61 52 63 6 65 $2,028,995.25 8. Do the same analysis as in Part A, but complete it using a Present Value Analysis instead. Using this analysis, how much should you save each wear? Be sure to show your cash flow table in your

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