Jacob just graduated from college and wants to plan for his retirement. He plans to work for 30 years, and then retire for the following 30 years. He expects to spend $120,000 in his first year of retirement, with a 3% annual growth rate. During his working-years he plans to increase savings at a rate of 5% per year. While working, his expected return on his account is 5%, and during retirement it will have a 4% return. After the 30th year of retirement, he wants to have $300,000 in his account. He currently has $10,000 in his retirement savings account.

To solve the problem, determine how much Jacob needs to save in year 1 to accomplish his retirement goals (use Solver or Goal Seek).

Answer rating: 100% (QA)

Jacob just graduated from college and wants to plan for his retirement He plans to work for 30 years ... View the full answer