Please prepare the solution in an excel spreadsheet and show the formulas and upload it for download.

Tim is 37 years old and would like to establish a retirement plan. Develop a spreadsheet

model that could be used to assist Tim with retirement planning. Your model should include

the following input parameters:

Tim's current age = 37 years

Tim's current total retirement savings = $259,000

Annual rate of return on retirement savings = 4%

Tim's current annual salary = $145,000

Tim's expected annual percentage increase in salary = 2%

Tim's percentage of annual salary contributed to retirement = 6%

Tim's expected age of retirement = 65

Tim's expected annual expenses after retirement (current dollars) = $90,000

Rate of return on retirement savings after retirement = 3%

Income tax rate postretirement = 15%

Assume that Tim's employer contributes 6% of Tim's salary to his retirement fund. Tim can

make an additional annual contribution to his retirement fund before taxes (tax-free) up to a

contribution of $16,000. Assume that he contributes $6,000 per year. Also, assume an

inflation rate of 2%.

Managerial Report

Your spreadsheet model should provide the accumulated savings at the onset of retirement

as well as the age at which funds will be depleted (given assumptions on the input

parameters).

As a feature of your spreadsheet model, build a data table to demonstrate the sensitivity of

the age at which funds will be depleted to the retirement age and additional pre-tax

contributions. Similarly, consider other factors you think might be important.

Develop a report for Tim outlining the factors that will have the greatest impact on his

retirement.

Please show the answer in a new excel spreadsheet with formulas. Don't post any screenshots already seen here.