Question

Excel retirement problem:

You just got your first job and plan to start saving for retirement by investing with each monthly paycheck.

You plan to retire in 45 years.

In 50 years, you want to give your daughter a gift of $1,000,000. You will receive an inheritance from a rich great-uncle of $250,000 in 20 years.

You think you will want $150,000 every year when you retire, starting the day you retire. You plan to need 30 payments, so the last one will be paid at the end of the 29th year (beginning of the 30th year). You do not want to leave any money in your account at the end.

You expect to earn 8% APR during your investing years and 5% APR during your retirement years. How much do you need to save each month to meet your retirement goal?

**Find-**

Retirement withdrawals:

Inheritance:

Gift:

APR (investing):

m for investing years:

APR (retirement)

m for retirement years:

Inflation rate:

Real rate:

**Solve for-**

a) PV at time 45:

b) PV Today:

c) Monthly payments to fund value:

Answer #1

You have finished your time at Kelley and need to start thinking
about retirement. You plan on working for 20 more years and then
retire. Upon your retirement 20 years from today, you plan to have
enough money to withdraw $10,000 per month, with the first payment
coming exactly one month after your retirement day. You expect your
retirement account to earn a return of 8% APR (stated rate),
compounded monthly, on all funds in the retirement account.
Assuming you...

A year from now, you plan to begin saving for your retirement by
making a deposit into a new savings account that has an expected
return of 7.5% compounded monthly. You plan to continue depositing
the same amount each year until you retire in 30 years. You expect
to make withdrawals in the amount of $200 from your savings account
every week for 45 years after you retire. Assume you were asked to
find the amount you will need to...

At age
43,
you start saving for retirement. If your investment plan pays an
APR of
5%
and you want to have
$0.9
million when you retire in
22
years, how much should you deposit monthly?
You should invest
$___
each month.

You are 25 years old and decide to start saving for your
retirement. You plan to save $X at the end of each year (so the
first deposit will be one year from now), and will make the last
deposit when you retire at age 67. Suppose you earn 4% per year on
your retirement savings. You want the present value of your total
retirement savings to be $2Million. How do you need to save each
year (the same amount...

A week from now, you plan to begin saving for your retirement by
depositing $200 into a new savings account that has an expected
return of 7.75% compounded monthly. You plan to continue depositing
the same amount each week until you retire in 40 years. You expect
to make withdrawals from your savings account every year for 35
years after you retire. Assume you were asked to find the amount
you will be able to withdraw each year from your...

A year from now, you plan to begin saving for your retirement by
depositing $20,000 into a new savings account that has an expected
return of 5.75% compounded monthly. You plan to continue depositing
the same amount each year until you retire in 35 years. You expect
to make withdrawals from your savings account every month for 40
years after you retire. Assume you were asked to find the amount
you will be able to withdraw each month from your...

10. You are 29 years old and decide to start saving on your
retirement. You plan to save $6,000 at the end of each year (so the
first deposit will be one year from now) and make the last deposit
when you retire at age 65. Suppose you earn 6% per year on your
retirement savings. How much will you have saved for retirement at
the age of 65?
11. A rich relative has bequeathed you with a growing
perpetuity....

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are 26 years old and decide to start saving for your retirement.
You plan to save $6,000 at the end of each year (so the first
deposit will be one year from now), and will make the last deposit
when you retire at age 65. Suppose you earn 6% per year on your
retirement savings, how much will you have saved for retirement
right at age 65? (Round to the nearest dollar.)

You are 23 years old and decide to start saving for your
retirement. You plan to save $ 6,500 at the end of each year (so
the first deposit will be one year from now), and will make the
last deposit when you retire at age 69. Suppose you earn 12% per
year on your retirement savings.
a. How much will you have saved for retirement?
b. How much will you have saved if you wait until age 40 to...

You are 30 years old and decide to start saving for your
retirement. You plan to save $ 5000 at the end of each year (so
the first deposit will be one year from now), and will make the
last deposit when you retire at age 65 Suppose you earn 11 % per
year on your retirement savings. a. How much will you have saved
for retirement?
b. How much will you have saved if you wait until age 39...

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