Please use excel & show formulas.

5. You are planning for retirement. Use the following information to answer the question. a. The expected inflation rate from now until retirement is expected to be 2.5%. b. Your current income/expenses are $130,000 and that is the same standard of living you will have in retirement. To estimate expenses, you can take the average of the first year in retirement and last year in retirement and assume that is the value for each year in retirement. c. You can expect to earn 5.5 % on your money in retirement. d. You are 30 when you graduate and expect to work until you are 65. e. Your life expectancy is 85 f. You will leave your heirs $1,250,000 upon your death.

How much will you need at retirement if you assume that the amount you will spend in retirement is the average of the first and last years expenses in retirement?

g. Assume that you withdraw the expenses at the beginning of each year of retirement.

6. You are saving for retirement. Use the following information to answer the question. a. Using the salary in 5, assume your average salary increase is 2.9% per year. b. Assume that you save in a 401(k) type account the average of your first and last years salary at 15% each year (similar to the way you did expenses). To estimate contributions, you can take the average of the first year working contribution and the last working year contribution and assume that is the value for each years contribution during your career. c. You earn 7.5% throughout your working life.

Will you have enough in retirement (tell me how much you will have)?

How much in total can you leave your heirs to exactly meet your longevity goal?