Assumptions

Salary: $ 110,000

Match: 3%

Expected Return: 7% Years: 35

Question Part One #1 If you save 15% of your salary each year, how much money would you have when you turn 65, assuming you earn a 7% annual return on your investments? Annual Savings Total Amount at age 65

#2 During retirement, your return drops to 5% annually as you decide to invest more conservatively to protect your principal. How much could you spend each year and not have your money run out before age 95?

1.Annual Savings=(15%+3%)*110000=19800.

Total Amount at Age 65=FV(7%,35,-19800)=2737090.1914

2. =PMT(5%,95-66+1,-2737090.1914) =178051.6449

I understand the answer except- Why do you add the +1 in the (95-66+1)???