Question: 1. Simple IRA problem: Sandra Worrell would like your help with a financial planning problem. The facts are these: Sandra is 30 years old, will

1. Simple IRA problem: Sandra Worrell would like your help with a financial planning problem. The facts are these:

Sandra is 30 years old, will work 35 more years, and then retire.

Her salary this year is $80,000, and it will grow at a 4% annual rate.

Sandra will invest an amount equal to 8% of her salary at the end of each year in a 401(k) account.

Her investments will earn 7% annually.

Create a spreadsheet that will address Sandras questions. A. What will be Sandras salary and IRA value at the end of year 35? To retire, Sandra feels she needs a portfolio worth 10 times her salary. Will she achieve that goal? B. What contribution rate would be necessary for Abe to achieve her goal?

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