BUS 623 Case Study - Heek 4 Case Information: Years until retirement: Amount to withdraw each year: Years to withdraw in retirement: Interest rate: Inflation rate: Employer's annual contribution: Years until trust fund distribution: Amount of trust fund distribution: Solve using excel [PY.PMT.FY..etc] Show York 30 100,000 25 8.5% 3.0% $2,100 25 29,500 In order to answer any of these questions, first we need to know how much your friend will need when she is ready to retire. Since this amount will be the same for each of the parts of the problem, solve for this amount below: Amount needed at retirement: The amount your friend must save each year to fund her retirement is: Amount to save each gear: The lump sum your friend must deposit today to fund her retirement is: Lump sum deposited today: To find the amount of the annual deposit now, it is easier to break down the components of the problem. Doing so for each of the following to find your friend's annual deposit, we get: Value of employer's contribution at retirement- Value of trust fund at retirement: Amount to save each gear now: Annual retirement pagment in 31 gears equal to $100.000 in todag's dollars Growing annuity factor for retirement period (wo rg ) Dividing by rg Amount needed at retirement PV now of amount needed at retirement Growing annuity factor for working period (wo r-g) Dividing by rg Amount to save each gear Amount needed to save this gear and then increasing by 3.0% each gear to reach the BUS 623 Case Study - Heek 4 Case Information: Years until retirement: Amount to withdraw each year: Years to withdraw in retirement: Interest rate: Inflation rate: Employer's annual contribution: Years until trust fund distribution: Amount of trust fund distribution: Solve using excel [PY.PMT.FY..etc] Show York 30 100,000 25 8.5% 3.0% $2,100 25 29,500 In order to answer any of these questions, first we need to know how much your friend will need when she is ready to retire. Since this amount will be the same for each of the parts of the problem, solve for this amount below: Amount needed at retirement: The amount your friend must save each year to fund her retirement is: Amount to save each gear: The lump sum your friend must deposit today to fund her retirement is: Lump sum deposited today: To find the amount of the annual deposit now, it is easier to break down the components of the problem. Doing so for each of the following to find your friend's annual deposit, we get: Value of employer's contribution at retirement- Value of trust fund at retirement: Amount to save each gear now: Annual retirement pagment in 31 gears equal to $100.000 in todag's dollars Growing annuity factor for retirement period (wo rg ) Dividing by rg Amount needed at retirement PV now of amount needed at retirement Growing annuity factor for working period (wo r-g) Dividing by rg Amount to save each gear Amount needed to save this gear and then increasing by 3.0% each gear to reach the