Excel is a tool for solving problems, but with many time value of money problems, you may still need to draw a timeline. This is a classic retirement problem. friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and $ Years until retirement: Amount to withdraw each year: Years to withdraw in retirement: Interest rate: 30 90,000 20 896 Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual deposits into her account for her If she starts making these deposits in one year and makes her last deposit on the day she retires, what amount must she deposit annually to be able to make the desired Suppose your friend has just inherited a large sum of money. Rather than making equal annual payments, she has decided to make one lump sum deposit today to cover her Suppose your friend's employer will contribute to the account each year as part of the company's profit sharing plan. In addition, your friend expects a distribution from a family $ Employer's annual contribution: Years until trust fund distribution: Amount trust fund distribution: 1,500 20 25,000 $ 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, we will solve for this amount now, which will be: 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, we will solve for this amount now, which will be: Amount needed at retirement: ?? . The amount your friend must save each year to fund her retirement is: Amount to save each year: ?? 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. By doing so, we will be able to find your friend's annual deposit as follows: Value of employer's contribution at retirement: Value of trust fund at retirement: ?? ?? Amount to save each year now