Question
Aakash is a family man who is planning for his future financial plans. He identified two major financial goals regarding which he has not made
Aakash is a family man who is planning for his future financial plans. He identified two major financial goals regarding which he has not made any savings yet. Firstly, towards his daughters marriage, when she turns age 25, and secondly, when he retires at the age of 60. He is currently 35 years old. He learnt about time value of money, compounding, discounting and inflation etc in a seminar and made a note of following points: Daughters Age 10 years, Aspirational corpus required if she were to be married today Rs. 10 million; He needs Rs. 1000000 per year for his living expenses if he retires today & he expects his life expectancy to be 80 years; Existing savings towards both the above goals NIL; Inflation Rate (Assumed to be constant for all years to come) 5%; Return on any investment/savings (Assumed to be constant for all years to come) 10%; (a) Build a spreadsheet-based model to compute the monthly savings he will have to make from now till his daughter attaining the age of marriage. (b) Build a spreadsheet-based model to compute the monthly savings he will have to make from now till he reaches age 60.
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