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Modelling and Spreadsheet EngineeringGroup C Assignment:Ziada Abdella, Oluwole Adekogba, Loretta Gladue, Xinlu Li, Yung-Ju TsaiNorthern Alberta Institute of TechnologyPrepared for Marwan Amaneddine CMIS 2250November. 13, 2018Chapter. 2 Questions (Retirement Planning)1. Explore the mess by answering the following questions.
a. What do we know?In this case we know that Bob is 45 years of age and would like to retire by the age of 60 – 65. Bob has multiple investments in which some we don't have the return on investment on. In addition to his contributions, he had set aside $137,000 on investment. We also know that Bob is very healthy and lives a healthy lifestyle even though cancer runs in his family. Bob’s house is depreciated in value and if he would sell the house he would have more money for retirement. He also has $24,000 set aside for his daughters education. If Bob’s mother died he will be receiving $300,000 in the order of her death. Bob and his wife are expected to have an inheritance of $10,000.00 to 13,333.00 from her mother so this will give more assets toward his retirement. b. What can we assume?We can assume his retirement age to be 65, his return on investments to be on average of 5%, and his income needs to be 75% out of his current income. If he can keep earning the same salaryuntil his retirement the goals he planned will be easily achieved. However, if something happened to his source of income, it will affect his plan.