Question 2 (based on Week 1 Excel Examples - Chapters 1-4)

Note: This question is a little more complex than the previous one, and will require you compute your

answer in 2 stages.

You plan on retiring in 25 years. In order to increase your retirement income, you open a retirement

account today, and make a $20,000 deposit. In addition, you will deposit $5,000 every year for the next

25 years. Your plan is to start making annual withdrawals of $50,000 from the account, after you retire.

Assuming the account is earning 7% rate of interest, how many years will it take, after you retire, before

the funds in your account are completely exhausted? Please include a written answer in a text box.

(assume annual compounding)