Using the accompanying Retirement_Calculator spreadsheet model, Claire wants to use Scenario Manager to compare the following retirement
Question:
Using the accompanying Retirement_Calculator spreadsheet model, Claire wants to use Scenario Manager to compare the following retirement saving scenarios:
Click here for the Excel Data File
Scenario | Starting salary | Increase rate | Saving rate | Return rate |
---|---|---|---|---|
1 | $ 55,000 | 2% | 15% | 7% |
2 | $ 70,000 | 2% | 10% | 7% |
3 | $ 68,000 | 3% | 15% | 7% |
4 | $ 72,000 | 3% | 10% | 7% |
Which scenario generates the highest retirement savings at the end of 10 years? What is the amount?
Note: Round "Amount" to 2 decimal places.
Which scenario generates the lowest retirement savings at the end of 20 years? What is the amount?
Note: Round "Amount" to 2 decimal places.
Which scenario generates the second-highest retirement savings at the end of 30 years? What is the amount?
Note: Round "Amount" to 2 decimal places.
For Scenario 4, if Claire would like to have $1 million at the end of 30 years, what would her saving rate need to be? How about at the end of 20 years?
Managerial Economics
ISBN: 978-0133020267
7th edition
Authors: Paul Keat, Philip K Young, Steve Erfle