Suppose that on your birthday you checked the balance on your retirement account and you decided to make a $1,000 payment at the end of every month until you retire at the specified age. If you disreagard the inflation (i.e. we adjust payments and interest with the inflation rate) and assume a 2% annual growth rate of your retirement fund, how much money will you have at the time you retire?
You may (and should) change the display format of input and output cells. You may add column or row labels and/or range names to input and output cells. ou may add validation rules to input cells. Orange Cell - input; grey Cell - output.
Homework Answers
![it is assumed that today is 25th birthday and plan to retire at the end of age of 65. It means that there would be 40 years of time gap between today and the date of retirement. Also assumed that monthly deposits are made at the end of each month starting from one month from today Age in years: Current balance: Annual interest rate: Monthly interest rate: Monthly Payment: Retirement Age: # Monthly Payments 25 $10,000 [Assumed current balance available in account] 0.1667% [2%/ 12: Annual rate is converted into monthly rate as there are 12 months in a year] $1,000 480 [(65 - 25) x 12 months 40 x 12 months 480 months] Future Value: $756,676.22 [Ref: NOTE NOTE Future Value is calculated using EXCEL FUNCTION FV(rate,nper,pmt,fv, type) where rate-o1667%; nper-480; pmt-1000; pv=-10000, type =0; Here, value for pmt & pv are negative as they denote cash inflows into the account; type 0 because monthly interest is compounded at the end of each month only Age in years: Current balance: 3 Annual interest rate: 4 Monthly interest rate: Monthly Payment Retirement Age: 25 $10,000 [Assumed current balance available in account] -83/12(2% / 12; Annual rate is converted into monthly rate as there are 12 months in a year] $1,000 7 | # Monthly Payments:-(B&B1) *12[(65-25) x 12 months-40 x 12 months-480 months] Future Value:FV(B4,B7,-B5,-B2,0) [Ref: NOTE]](http://img.homeworklib.com/questions/f1ba0b30-d0f2-11ea-af2e-b3944a1d00a5.png?x-oss-process=image/resize,w_560)
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Suppose that on your birthday you checked the balance on your
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