Question
This is my current retirement plan: Total expenses for 30 years of retirement I'm estimating: 67910000 Thai baht Future value of expense at the time
This is my current retirement plan:
Total expenses for 30 years of retirement I'm estimating: 67910000 Thai baht
Future value of expense at the time of retirement: 196822081 THB
My current savings is 0
Estimated average annual rate of return: 7.5%
Inflation Rate: 3%
Based on the annual expenses worked out above, calculate how much total savings i should have on the day you retire (i.e., the present value of all the expenses you need for retirement on the day i will stop working) using the rate of return assumed above. Next part based on the total savings required found and the current savings reported above, find out how much i need to save each year now until the day i will stop working, given an interest rate i have described in above. Please show workings. Also show what formula to use if done on excel.
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