In: Finance
This assignment is to be completed in Excel. When completed, submit the exercise by the due date in Blackboard (BB) and Attach a copy of the excel spreadsheet.
Case Narrative:
Susan Smith is age 45 and plans to retire in 15 years (at age 60). She has retirement savings in a mutual fund account, which has a current balance of $250,000 (Susan does not plan to add any additional money to this account). Also, Susan opened a 401K retirement account with her new employer and will contribute $20,000 per year into her 401K until retirement.
1 | Amount in mutual fund at age 60 | $739,719.34 |
2 | Amount in 401K at age 60 | $587,218.32 |
3 | Total investment balance | $1,326,937.66 |
4 | Amount that can be withdrawn in retirement | ($89,031.13) |
Hence she cannot withdraw $90000 per year |
WORKINGS