Create an Excel “Retirement Calculator”. The output from your calculator will be the amount that you need to save each year in order to meet your retirement goals. You will start saving in a few years. A rich aunt has also told you that she has left you some money in her will. She is only expected to live a few more years. You will also put your inheritance from your aunt as a lump sum into your retirement account. The inputs will be:

1. The year in which you will make your first annual payment into your savings account.
2. The number of years until retirement.
3. The number of years that you will live in retirement (which will be the number of withdrawals that you will make from their savings account in retirement)
4. The year you will receive the lump sum from your aunt’s will
5. The amount of the inheritanc
6. The discount rate.
7. The growth rate of the deposits (remember that g must be less than r)
8. The growth rate of the annual withdrawals when you retire (again, g must be less than r)
9. The amount of money that you want to withdraw from your savings account in your first year of retirement.

Your spreadsheet must be “live” in that the marker will be changing each of your input assumptions to assess the usefulness of your spreadsheet. Your inputs should be clearly labelled, and your output (the amount that you need to start saving next year) should also be clearly labelled.

Answer rating: 100% (QA)

Answer The Retirement Calculator Inputs 1 The year in which you will make your first annual payment into your savings account The year in which you wi... View the full answer