Question: Lindsay is 25 years old and has a new job in web development. Lindsay wants to make sure she is financially sound in 30 years,
Lindsay is 25 years old and has a new job in web development. Lindsay wants to make sure she is financially sound in 30 years, so she plans to invest the same amount into a retirement account at the end of every year for the next 30 years.
| (a) | Construct a data table in Excel that will show Lindsay the balance of her retirement account for various levels of annual investment and return. If Lindsay invests $10,500 at return of 5%, what would be the balance at the end of 20th year in the account? | |||||||||||||||||||||||||||||||||||||||||||||||||||
| If required, round your answers to two decimal places. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| $ _________________ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| (b) | Develop the two-way table in Excel for the balance at the end of 30th year in the account. Consider annual investment amounts of $5000 to $20,000 in increments of $1000, and returns of 0% to 12% in increments of 1%. Note that because Lindsay invests at the end of the year, there is no interest earned on the contribution for the year in which she contributes. Complete the below table. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| If required, round your answers to two decimal places. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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