Question: problem 9 entered usuing excel values in cells already listed Problem 1 Problem 2 Problem 3 Problem 4 Problem S Problem 6 Problem 7 Problem
Problem 1 Problem 2 Problem 3 Problem 4 Problem S Problem 6 Problem 7 Problem S Problem 9 $1,000.00 How much money do you plan to save each period? 30 Years until your retirement 15 Years you plan to be in retirement (how long your money needs to last). 8.00% Expected return on your savings before retirement (this is an EAR)) 5.00% Expected return on your savings during retirement (this is an EAR) 12 How frequently do you save money each year? Annually (1), quarterly (4), ar monthly (12 times each year)? 7.72% Expected return on your savings before retirement (this is an APR) 489% Expected return on your savings during retirement (this is an APR) $1,408,550.59 Amount you'll have in your account at retirement based on the amount you save each period - $11,057.42 Amount you could spend each period during your retirement $25,000.00 How much money do you currently have in savings? $1,660,117.01 Amount you'll have in your account at retirement based on the amount you save each period plus the amount already in savings $13,032 26 Amount you could spend each period during your retirement $1,000,000.00 How much money would you like to have in savings when you retire? 0.50% Interest rate (rate of return) you would need per period to hit this target amount. That periodic rate converted into an effective annual return (EAR) Time Value of Money Review 50 Points Your friend Dalia needs your help in planning for retirement. She has told you how much she is saving and how frequently, the number of years until her retirement, and how long she needs the savings to last in retirement. She has also told you what she believes she can earn on her investment prior to retirement, but she knows the interest earned during retirement will be lower as she will invest in safer assets. Use the information in dark green cells to construct a spreadsheet to help Dalia see what she can expect for retirement. Format all cells with dollar amounts or percentages as Currency or Percentage, respectively
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