This assignment is to be completed in Excel. Whencompleted, 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 age60). She has retirement savings in a mutual fund account, which hasa current balance of $250,000 (Susan does not plan to add anyadditional money to this account).  Also, Susan opened a401K retirement account with her new employer and will contribute$20,000 per year into her 401K until retirement.  

• Assuming that Susan’s mutual fund account grows at an annualrate of 7.5% how much money will Susan have in her mutual fundaccount at age 60?  
• Assuming that Susan’s 401K account grows at an annual rate of9% per year, how much money will Susan have in her 401K account atage 60?
• What is the total investment balance of Susan’s retirementaccount at the age of 60?
• At retirement, Susan plans take the investment balance from hermutual fund account and the balance from her 401K account andcombine them into an IRA account. To minimize risk, her IRA accountwill invest in more conservative securities.  As aresult, Susan anticipates her annual IRA returns to be about 5.5%during retirement.   While in retirement, Susanplans to withdraw $90,000 per year from her IRA account over thenext 32 years.  Is this possible? Explain why or whynot?