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Suppose that Jason delays his retirement plans and decides to continue working and contributing to his...

Suppose that Jason delays his retirement plans and decides to continue working and contributing to his retirement fund for an additional 5 years. By delaying his retirement, he will need to withdraw only $8,000/month for 20 years. In this case, how much must he contribute each month for 30 years into a retirement account earning interest at the rate of 6% compounded monthly to meet his retirement goal? (Answer is $1,111.63).

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Answer #1

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Home nert Page Layout Formulas Data Review View dd-Ins s Cut aCopy Σ AutoSum General ー E ゴWrap Text Sort &Find & Formatting, as Table w styles. Styles 2 ClearFe Select Edting ▼ в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format ㆆ ▼ Paste Format Painter Cells Number Font Alignment Clipboard ER A EJ458 EP EQ EM EN EO EJ EK EL 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 il 1 r n CALCULATOR ( LOAN OPTIONS | pv, fy, annuity i CAP STRU VALUE PRESENT VALUE OF ALL RETIREMENT WITHDRAWALS PMT YEARS PERIODS IN A YEAR RATE PRESENT VALUE = 1116646.17 EXCEL-PV(EM455/EM454,EM453EM454,EM452) 8000 20 12 6% NOW WE WILL FIND HOW MUCH HE HAS TO DEPOSIT PER MONTH YEARS PERIODS IN A YEAR RATE FUTURE VALUE 30 12 6% 1116646.17 ANSWER PMT S 1,111.63 EXCEL PMT(EM461/EM460,EM459 EM460,,-EM462) BOX DILUTION DOLLAR COST AVGMORTGAGE EXPO Sheeti Sheet2 ShelI rences: x261 0:52Home nert Page Layout Formulas Data Review View dd-Ins Cut E AutoSum Calibri ー E ゴWrap Text General aCopy в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format Paste Sort &Find & 2 ClearFe Select Edting Format Painter Formatting, as Table w styles. Styles ▼ ㆆ ▼ Clipboard Font Alignment Number Cells E0475 EJ EK EL EM EN EO EP EQ ER 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 il 1 r n CALCULATOR ( LOAN OPTIONS | pv, fy, annuity i CAP STRU VALUE PRESENT VALUE OF ANNUITY A/(r/m)*(1-(1/(1+r/m)Amn (8000/(0.06/12)*(1-(1/(1+0.06/12) 12 20)) PVA 1116646.17 FUTURE VALUE OF ANNUITY FVA = 1116646.17- 1116646.17- A/(r/m)*(1+r/m)Amn -1) (A/(0.06/12))* ((1+0.06/12)12+30) - 1) A (1004.515042) 1111.63 BOX DILUTION DOLLAR COST AVGMORTGAGE EXPO Sheeti Sheet2 ShelI rences: x261 福 130% 12:58

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