Question: Using Excel answer the following: A.) Assuming a range of return rates of 2.00 to 8.00 percent (varying by 0.50 percent increments) and three different

Using Excel answer the following:

A.) Assuming a range of return rates of 2.00 to 8.00 percent (varying by 0.50 percent increments) and three different lengths of contribution (20, 30 and 40 years), create table 2 to illustrate the final account balances of a Roth IRA. Assume a monthly contribution of $300.00 in all scenarios. Create the table to allow flexibility in changing these values.

B.) Using the numbers from table 2, create table 3 to compare the monthly withdrawals from the potential Roth IRA account balances. The initial plan is to exhaust the account after 20 years and the rate of return on the account is a constant 4.00 percent in all scenarios. However, both numbers may change, and table construction should take this into account.

Table templates

Table 1: ROTH IRA Retirement Assumptions
Starting rate of return (annual) 2.00 Amount of periodic deposit $300.00
Rate increment 0.50 Deposit/withdrawal frequency within a year 12
Starting investment length (years) 20 Withdrawal length (years) 20
Increment in length (years) 10 Rate of return during withdrawals 4.00
Table 2: Projected ROTH IRA Retirement Values
Rate of Return 20 Years 30 Years 40 Years
2.00% Values? Values? Values?
to Values? Values? Values?
8.00% Values? Values? Values?
Table 3: Projected Periodic Withdrawals
Rate of Return 20 Years
4.00% Values? Values? Values?
4.00% Values? Values? Values?
4.00% Values? Values? Values?

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