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Retirement Fund Parameters Current Year 2016 Age 37 Current Savings $259,000 Rate of Return on Retirement Savings 7.0% Current Annual Salary $145,000 Expected Annual Salary

Retirement Fund

Parameters

Current Year

2016

Age

37

Current Savings

$259,000

Rate of Return on Retirement Savings

7.0%

Current Annual Salary

$145,000

Expected Annual Salary Increase

2.0%

% of Salary Contributed

6.0%

Expected Age of Retirement

65

% Employer Contribution

5.0%

Annual Employee (tax free) Contributions

$6,000

Inflation Rate

2.00%

2a) Prepare a spreadsheet indicating the value of retirement fund on a yearly basis when retiring at age of 65.

2b) what is the net present value of the retirement fund at retirement age assuming an inflation rate of 2.0%?

I need help figuring out how to prepare a table in excel for this. I completed one already but it was not what the professor was looking for. He showed the class how to do it but was going to fast in his lecture. I was only able to copy down what I could. This is what he told us to start with..

Current Year Age Beginning savings Current Salary salary contributed Employer contribution Fixed contribution Ending savings
2016 37 259000 145000 8700 7250 6000 300617

The final answer for part one is $4,225,518. In my origional excel, I basically added contributions per year along with the rate of return on retirement savings from the final amount in the retirement fund. My question is, what calculations in excel should I use to get to my answer and how do I get to the final $4,225,518? Is there any way someone could show me the formulas in excel?

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