PARTIAL CREDIT$--$ You must use Excel equations and functions $(30$ pts$)$

Michael is planning his retirement $30$ years from now.

Michael plans to withdraw $$15,000$ per month from his retirement account for $15$ years and then $$7,500$ a month for the following $10$ years. He will withdraw from this account for a total of $25$ years. He plans to have $$500,000$ for his heirs at the end of the retirement period. Michael will earn $4$ percent compounded monthly during the retirement phase of his life.

He plans to save $$500$ each month for the next $30$ years $($ordinary annuity$).$ What APR must Michael earn during his savings period assuming monthly compounding?

What APR must Michael earn during his savings period assuming monthly compounding?

Saving Period

Initial Balance

$$0$

Total Length

$30$ years

Savings amount

$$500$ per month

Rate during Savings $($APR$)$

$?$ APR

Retirement Period

Withdrawal Period $1$

$15$ years

Withdrawal amount in period $1$

Withdrawal Period $2$

$$15,000$ per month

Withdrawal amount in period $2$

$10$ years

Inheritance

$$5,000$ per month

$$500,000$

Rate during Retirement

$4\mathrm{.}00\%$ APR