18 Nov In a single Word document, complete Chapter 10 Case Problem: Retirement Plan.? If using Excel or Minitab for your calculations, charts, and graphs, please copy and paste your work into t
- In a single Word document, complete Chapter 10 Case Problem: “Retirement Plan.” If using Excel or Minitab for your calculations, charts, and graphs, please copy and paste your work into the Word document. Do not attach Excel or Minitab as separate documents.
-response should be a minimum of 2-3 pages . The font is Times New Roman, font size should be 12, and the paragraphs are single-spaced. There should be a minimum of one reference supporting your observations. Citations are to follow APA 7.0. double space.
– no plagiarism, need plagiarism report
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Chapter 10: Spreadsheet Models Case Problem Retirement Plan Book Title: Business Analytics Printed By: Jigar Jitendrak Patel ([email protected]) © 2021 Cengage Learning, Cengage Learning
Chapter Review
Case Problem Retirement Plan
Tim is 37 years old and would like to establish a retirement plan. Develop a spreadsheet model that could be used to assist Tim with retirement planning. Your model should include the following input parameters:
Tim’s current age = 37 years
Tim’s current total retirement savings = $259,000
Annual rate of return on retirement savings = 4%
Tim’s current annual salary = $145,000
Tim’s expected annual percentage increase in salary = 2%
Tim’s percentage of annual salary contributed to retirement = 6%
Tim’s expected age of retirement = 65
Tim’s expected annual expenses after retirement (current dollars) = $90,000
Rate of return on retirement savings after retirement = 3%
Income tax rate postretirement = 15%
Assume that Tim’s employer contributes 6% of Tim’s salary to his retirement fund. Tim can make an additional annual contribution to his retirement fund before taxes (tax free) up to a contribution of $16,000. Assume that he contributes $6,000 per year. Also, assume an inflation rate of 2%.
Managerial Report
Your spreadsheet model should provide the accumulated savings at the onset of retirement as well as the age at which funds will be depleted (given assumptions on the input parameters).
As a feature of your spreadsheet model, build a data table to demonstrate the sensitivity of the age at which funds will be depleted to the retirement age and
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additional pre-tax contributions. Similarly, consider other factors you think might be important.
Develop a report for Tim outlining the factors that will have the greatest impact on his retirement.
Chapter 10: Spreadsheet Models Case Problem Retirement Plan Book Title: Business Analytics Printed By: Jigar Jitendrak Patel ([email protected]) © 2021 Cengage Learning, Cengage Learning
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