Question: Use the Data Table feature (from the What-If Analysis tools) to calculate the total annual contribution (B12), the amount accumulated for retirement (B13), and the
Use the Data Table feature (from the What-If Analysis tools) to calculate the total annual contribution (B12), the amount accumulated for retirement (B13), and the pension amount per period during retirement (B14) by changing the annual contribution (B3) value ranging from $1,000 to $10,000 in increments of $1,000. Apply custom number format to the three formula cell references to show descriptive column headings. (b) Similarly, create a two-variable data table to calculate the pension amount per period during retirement (B14) by changing the annual contribution (B3) values from $1,000 to $10,000 in increments of $1,000 and the rate of return during retirement (B8) value from 3.0% to 10.0% in increments of 1.0%. Apply custom number format to the formula cell reference to show a descriptive heading. (c) Save the workbook. Scenario Manager (a) Using the Scenario Manager from the What-If Analysis tools, create three scenarios based on the table provided below. Changing Values Case 1 Case 2 Case 3 Annual contribution $1,000 $3,000 $5,000 Age when contributions start 20 25 30 Retirement age 65 67 69 Rate of return 2.5% 3.0% 4.0% Years in retirement 20 25 30 Rate of return during retirement 2.5% 3.0% 4.0% Periods per year 12 12 12 (b) Generate a scenario summary report for the total annual contribution (B12), the amount accumulated for retirement (B13), and the pension amount per period during retirement (B14). (c) Using the scenario summary results, create a Clustered Column chart based on the total annual contribution and the amount accumulated for retirement results. Be sure to add appropriate chart elements for your chart. (d) Save the workbook. Use Goal Seek (a) Using the Goal Seek tool from the What-If Analysis tools, determine the annual contribution amount required to earn a pension amount of $5,000 per month during retirement. Keep the Goal Seek result as the new annual contribution amount. (b) Format your workbook as desired (Headings, Font, Fill color, Number format...) (c) Save and close your workbook.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
