You are trying to decide how much to save for retirement. Assume you plan to save $5,000 per year with the first investment made one year from now. You think you can earn 10% per year on your investments and you plan to retire in 43 years, immediately after making your last $5,000 investment. Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section.

a.	How much will you have in your retirement account on the day you retire?
b.	If, instead of investing $5,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be?
c.	If you hope to live for 20 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 20th withdrawal (assume your savings will continue to earn 10% in retirement)?
d.	If, instead, you decide to withdraw $300,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it take until you exhaust your savings?
e.	Assuming the most you can afford to save is $1,000 per year, but you want to retire with $1 million in your investment account, how high of a return do you need to earn on your investments?

$ Annual saving Interest rate Years to retirement 5,000 10% 43 a. How much will you have in your retirement account on the day you retire? Future value $ 2,962,003.46 b. If, instead of investing $5,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? Lump-sum investment $ 49,169.99 c. If you hope to live for 20 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 20th withdrawal (assume your savings will continue to earn 10% in retirement)? Years of withdrawal 20 Annual withdrawal $ 347,915.81 d. If, instead, you decide to withdraw $300,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it take until you exhaust your savings? Annual with drawal $ 300,000 Number of periods e. Assuming the most you can afford to save is $1,000 per year, but you want to retire with $1 million in your investment account, how high of a return do you need to earn on your investments? S Annual saving Future value 1,000 1,000,000 $ Rate of return