Question

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: Ann E. Belle is age 42 and plans to retire in 25 years (at age 67). She has retirement savings in a mutual fund account, which has a current balance of $100,000 (Ann does not plan to add any additional money to this account). Also, Ann opened a 401K retirement account with her new employer and will contribute $15,000 per year into her 401K until retirement. • If Ann’s mutual fund account grows at an annual rate of 7.0% how much money will Ann have in her mutual fund account at age 67? • If Ann’s 401K account grows at an annual rate of 7.0% per year, how much money will Ann have in her 401K account at age 67? • What is the total investment balance of Ann’s retirement account at the age of 67? • At retirement, Ann plans take the investment balance from her mutual fund account and the balance from her 401K account and combine them into an IRA account. To minimize risk, her IRA account will invest in more conservative securities. As a result, Ann anticipates her annual IRA returns to be about 5.0% during retirement. While in retirement, Susan plans to withdraw $120,000 per year from her IRA account over the next 25 years. Is this possible? Explain why or why not?

Answer 1