Retirement Problem: Excel Functions For this retirement problem you should use the Excel Template I have provided. We will then use this same template to do further calculations as we discuss the functionality of Excel. Make sure to do all your calculations in the cells (rather than typing in answers). PLEASE SOLVE BY HAND AND SHOW FUNCTIONS/EQUATIONS USING A CALCULATOR
You just got your first job and plan to start saving for retirement by investing with each monthly paycheck.
You plan to retire in 45 years.
In 50 years, you want to give your daughter a gift of $1,000,000.
You will receive an inheritance from a rich great-uncle of $250,000 in 20 years.
You think you will want $150,000 every year when you retire, starting the day you retire. You plan to need 30 payments, so the last one will be paid at the end of the 29th year (beginning of the 30th year). You do not want to leave any money in your account at the end.
You expect to earn 8% APR during your investing years and 5% APR during your retirement years.
How much do you need to save each month to meet your retirement goal?