Requirement: Complete the following problems using an Excel spreadsheet. Questions:

1. An investor sets aside $10,000 when they are 18 years old. How much will the investor have accumulated at the end of 50 years if he/she can earn an average return of 8%? How much will be accumulated in the account if the investor earns10% instead of 8%? Note: This is not when the investor is 50 years old. Rather the investment is allowed to grow for 50 years.

2. An investor has determined that they need to accumulate $1,500,000 for retirement in 35 years. How much should this investor set aside each year in order to meet this goal if they expect an average return of 9%? How much must this investor set aside each year if they only have 25 years to accumulate theirdesired $1,500,000? What if the investor waits until there are only 15 years toaccumulate the $1,500,000?

3. Rather than saving each year to achieve their $1,500,000, assume the investor in question 2 saves monthly. How much must the investor set aside each month for 35 years? 25 years? 15 years?

4. At retirement, an investor plans to withdraw $40,000 per year. The investor assumes that he/she can earn an average 6% return over the 25 years they expect to make withdrawals. How much must this investor have accumulated in order to achieve their objective of withdrawing $40,000 per year?

5. What if the investor in question 4 wants to withdraw $3,600 per month?

6. An investor can afford to set aside $900 per month for retirement. He/she anticipates earning an average 8% return over a 30-year period. This investor would like to have $2,000,000 at retirement in 30 years. Will this investor meet this goal given the $900 per month contribution? How much more must this person set aside each month to meet the goal of $2,000,000 at retirement? If the investor cannot afford the additional contribution needed to meet the goal, what are some other options in planning for his/her retirement?

7. Compute how much you need to save each month for your retirement goal from the SMART goal assignment earlier this semester. Assume an expected return of 8.8% per year.