Master it$!$ Solution $($Please fill in the cells highlighted in light blue$)$

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. A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending goals:

Years until retirement:

Amount to withdraw each year:

Years to withdraw in retirement:

Interest rate:

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 retirement fund.

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:

Your friend's annual deposit is:

Employer's annual contribution:

Amount to save each year now: