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