Use the financial functions available in Excel to solve the time value problems below. Make sure that your spreadsheet prominently displays the requested answers.
1. You want to retire in 25 years and have enough money to provide for a $110,000 yearly income over a retirement period of 35 years. In this case, a timeline might be too big to create. Instead, set this up in Excel using the text examples.
How much do you need at retirement to fund a $110,000 annual income?
What annual amount must you invest each year until you retire to provide this amount? In both the pre-retirement and retirement periods, you expect to earn an average of 6% on investments.