Question

0. Question 1: Alexis is 25 years old and has decided to start a retirement program. Beginning in exactly one year, she will save $15,600 per year until she turns 65 (including when she turns 65). When she reaches retirement at age 65, she will begin to immediately withdraw with additional amounts withdrawn each year until she turns 90 (including when she turns 90). She would like to withdraw the same amount each year in retirement. Interest rate is assumed to be 5%

   1. a) Find the amount she would have accumulated at the age of 65? (10)

   2. b) What is the amount she can withdraw? (5)

Please put and explain in Excel

Answer 1

a:	Years to retirement	40
	Annual payment	15600
	Rate	5%
	Amount at retirement	$1,884,476.48
b	PV of the amount at retirement	$1,884,476.48
	Years for withdrawal	26
	Rate	5%
	Annual withdrawal	($131,092.33)

Amount at age 65 is computed using FV function in excel

Annual withdrawal using PMT function

AutoSave Book1 - Excel 《Product Activation Failed) Sign in File Insert Page Layout Formulas Data Review View Help Tell me what you want to do 수 Share Home Calibri Wrap Text General Paste u·녀 . 2.A . 호 들經垣@werge & Center-5 . % , Conditional Fornat as Cell Insert Delete Fornat FormattingTable Styles- 、. Sort & Find & : Filter-Select- Clipboard Alignment Number Styles Cells Editing C2 Years to retirement Years to retirement 65-25 15600 0.05 a: Annual payment Rate 4 Amount at retirement -FV(596,D2,-15600) PV of the amount at retirement Years for withdrawal Rate Annual withdrawal -D6 10 0.05 -PMT(5%,26,D8) 12 13 14 15 16 17 Sheet1 Shet2 Ready + 100 cENG 10:35 PM