2. You invest $12,000 a year in to a retirement fund starting at age 25 and continue to do so until the age of 55. You also plan to increase the investment by $1000each year starting when you are 37 ($13,000), 38 ($14,000) through age 55. You plan to retire at age 65 with $1,000,000 in your retirement account.a. Created the needed cash flow diagramb. What average annual interest rate (nearest 2%) must your retirement account produce? Do you think this interest rate is reasonable for your retirementplanning?c. Is it reasonable to increase your contribution $1,000 a year starting at age 37 through age 55? What would your contribution be per year at age 55?d. What would happen if you retired at 60 instead of 65?Solve the problem using an Excell spreadsheet.

As you have asked a question with multiple parts, we will solve the first 3 parts as per Bartleby…

2. You invest $12,000 a year in to a retirement fund starting at age 25 and continue to do so until the age of 55. You also plan to increase the investment by $1000 each year starting when you are 37 ($13,000), 38 ($14,000) through age 55. You plan to retire at age 65 with $1,000,000 in your retirement account. a. Created the needed cash flow diagram b. What average annual interest rate (nearest %%) must your retirement account produce? Do you think this interest rate is reasonable for your retirement planning? c. Is it reasonable to increase your contribution $1,000 a year starting at age 37 through age 55? What would your contribution be per year at age 55? d. What would happen if you retired at 60 instead of 65? Solve the problem using an Excell spreadsheet.

2. You invest $12,000 a year in to a retirement fund starting at age 25 and continue to do so until the age of 55. You also plan to increase the investment by $1000 each year starting when you are 37 ($13,000), 38 ($14,000) through age 55. You plan to retire at age 65 with $1,000,000 in your retirement account. a. Created the needed cash flow diagram b. What average annual interest rate (nearest %%) must your retirement account produce? Do you think this interest rate is reasonable for your retirement planning? c. Is it reasonable to increase your contribution $1,000 a year starting at age 37 through age 55? What would your contribution be per year at age 55? d. What would happen if you retired at 60 instead of 65? Solve the problem using an Excell spreadsheet.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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