Question

Lindsay is 31 years old and has a new job in web development. She wants to make sure that she is financially sound by the age of 55, so she plans to invest the same amount into a retirement account at the end of every year for the next 24 years.

(a) Construct a data table in Excel that will show Lindsay the balance of her retirement account for various levels of annual investment and return. If Lindsay invests $10,000 at return of 6%, what would be the balance at the end of the 24" year? Note that because Lindsay invests at the end of the year, there is no interest earned on the contribution for the year r in which she contributes. Round your answer to a whole dollar amount.

508,156 (answer to a)

(b) Develop a two-way table for annual investment amounts of $5,000 to $20,000 in increments of $1,000 and for returns of 0% to 12% in increments of 1%. From the 2-way table, what are the minimum annual investments Lindsay's must contribute for annual rates ranging from 6% to 11%, if she wants to accrue a final payout of at least $1 million? Note that because Lindsay invests at the end of the year, there is no interest earned on the contribution for the year in which she contributes.

Annual Minimum Annual Return Investment

6% 19,679 (correct answer)

7% 17,189 (wrong )

8% 14,979.02 (correct answer)

9% 13,022 & 13,023 (wrong)

10% 11,300 (wrong)

11% 9,789.21 (right answer)

Answer 1