Prepare your retirement plan as followed:

1. (2 points) Imagine yourself on the retirement day (the day you will stop working) and estimate the following: 1.1. NPER = How long will you continue to live? (e.g. 20 years before you will die) 1.2. PMT = Think about all the expenses you usually spend per year, plus some inflation; how much income will you need? (e.g. 300,000 baht/year) 1.3. RATE = What might the rate of return on a typical investment at that time be? (e.g. 6% per year) [Hint: You may wish to do some research on the current market condition as a guide to what the appropriate rate may be.] 1.4. PV = Assume you have been saving for your retirement, approximate how much total wealth you would have accumulated by then? (e.g. 10 million baht) 2. (5 points) Based on your information in part 1., find out how long you will actually be able to survive by having total savings of PV, spending PMT per year, and can earn a return of RATE on your investment. 3. (5 points) Based on your information in part 1., estimate how much you will be able to spend each year if you currently have total savings of PV, can earn a return of RATE, and plan to live for NPER more years. 4. (5 points) Based on your information in part 1., determine how much return you should be earning, in order to afford to spend PMT per year for the next NPER years with your saving of PV. 5. (5 points) Based on your information in part 1., calculate how much total savings you should on the day you retire if you want to spend PMT per year for the next NPER years with investment return of RATE. 6. (5 points) Your answer in part 5 is how much total savings you should have on the day you retire. For this part, compute the amount you need to save every year from now until the time you retire, by assuming your own current age (e.g. 35 years old), the age you plan to retire (e.g. 65 years old), and a rate of return you can earn on the savings. 7. (3 points) Evaluate your answer in part 6: Will you be able to achieve your targeted savings/wealth for your retirement? If not, discuss how you may adjust your plan.