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Lindsay is 28 years old and has a new job in web development. She wants to...

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Finance

Lindsay is 28 years old and has a new job in web development.She wants to make sure that she is financially sound by the age of55, so she plans to invest the same amount into a retirementaccount at the end of every year for the next 27 years.

(a) Construct a data table in Excel that will show Lindsay thebalance of her retirement account for various levels of annualinvestment and return. If Lindsay invests $10,000 at return of 6%,what would be the balance at the end of the 27th year? Note thatbecause Lindsay invests at the end of the year, there is nointerest earned on the contribution for the year in which shecontributes. Round your answer to a whole dollar amount.

(b) Develop a two-way table for annual investment amounts of$5,000 to $20,000 in increments of $1,000 and for returns of 0% to12% in increments of 1%. From the 2-way table, what are the minimumannual investments Lindsay’s must contribute for annual ratesranging from 6% to 11%, if she wants to accrue a final payout of atleast $1 million? Note that because Lindsay invests at the end ofthe year, there is no interest earned on the contribution for theyear in which she contributes.

Annual Return Minimum Annual Investment 6% $ 7% $ 8% $ 9% $ 10%$ 11% $

Answer & Explanation Solved by verified expert
3.8 Ratings (475 Votes)
Answer aAnswer b The two way    See Answer
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