Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required: With no taxes or inflation (Spreadsheet 211), what would be your retirement annuity if you change the savings rate by 2% ? (Do not

image text in transcribed
image text in transcribed
Required: With no taxes or inflation (Spreadsheet 211), what would be your retirement annuity if you change the savings rate by 2% ? (Do not round intermediate calculations and round your final answer to the nearest whole dollar.) \begin{tabular}{|c|c|c|c|c|c|} \hline & A & B & C & D & E \\ \hline 1 & Retirement Years & Income Growth & Savings Rate & ROR & \\ \hline 2 & 25 & 0.07 & 0.15 & 0.06 & \\ \hline 3 & Age & Income & Savings & Cumulative Savings & Consuraption \\ \hline 4 & 30 & 50,000 & 7,500 & 7,500 & 42,500 \\ \hline 5 & 31 & 53,500 & 8,025 & 15,975 & 45,475 \\ \hline 9 & 35 & 70,128 & 10,519 & 61,658 & 59,608 \\ \hline 19 & 45 & 137,952 & 20,693 & 308,859 & 117,259 \\ \hline 29 & 55 & 271,372 & 40,706 & 943,477 & 230,666 \\ \hline 39 & 65 & 533,829 & 80,074 & 2,457,518 & 453,755 \\ \hline 40 & Total & 7,445,673 & 1,116,851 & Retirement Annuity & 192,244 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline & A & B & C & D & E \\ \hline 1 & Retirement Years & Income Growth & Savings Rate & ROR & \\ \hline 2 & 25 & 0.07 & 0.15 & 0.06 & \\ \hline 3 & Age & Income & Savings & Cumulative Savings & Consumption \\ \hline 4 & 30 & 50000 & =B4SCS2 & =C4 & =B4C4 \\ \hline 5 & 31 & =B4(1+SBS2) & =B5+SC52 & =D4(1+ SDS2)+C & =B5CS \\ \hline 39 & 65 & =B38(1+$B52) & =B39$CS2 & =D38(1+5D$2)+C39 & =B39C39 \\ \hline 40 & Total & =SUM(B4:B39) & -SUM(C4:C39) & Retirement Annuity & = PMT(SDS2,SAS2,-SDS39,0,0) \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Futures And Options Market

Authors: John C. Hull

6th Edition

0132242265, 9780132242264

More Books

Students also viewed these Finance questions

Question

List some problems associated with risk tolerance questionnaires.

Answered: 1 week ago

Question

Give details of the use of ICT in workforce planning

Answered: 1 week ago

Question

Explain the various meanings of and approaches to flexible working

Answered: 1 week ago