This is the original QUESTION.

Can you show me step by step how did it get the RETIREMENT CORPUS OF $ 2, 345, 34.92 either on EXCEL formula or manual. And can you show me step by step as well how to calculate in excel the $1,753.16 in part of saving after retirement? I want to know how did you get it or how did you solve it using Excel. Thank you

B) The annual expenses (e.g. food & living, rent / mortgage, healthcare, childcare, travelling, etc.): Estimate how much you will need during those retirement years based on todays dollar. Also, consider increasing the amount over different periods ($20,000 a year in the first 10 years, $30,000 per year over the next 10 years).

C) Inflation rate: 3%

D) Rate of return: 10%

E) Current savings: 0

Questions

1. Compute the future values of each annual expense discussed in [1B] with inflation rate chosen in [1C]. That is, based on the example given, find the future value of the expense you will need in 25 years from today (i.e. when you are 60) by compounding an inflation of, say, 3% per year to the amount in todays dollars. Repeat this process for all the retirement years. If the expense amounts were assumed to be increasing over time, be sure to consider that in the calculations.

2. Based on the annual expenses worked out in [2], calculate how much total savings you should have on the day you retire (i.e. the present value of all the expenses you need for retirement on the day you will stop working) using the rate of return assumed in [1D].

3. Based on the total savings required found in [3] and the current savings reported in [1E], find out how much you need to save each year now until the day you will stop working, given an interest rate you have described in [1D].

Can you show me step by step how this was calculated? because I am having a hard time understanding it.

How did it get the answer of $ 2, 345, 34.92? Can you show me the calculation? step by step, please.

Ans 1) Calculation of Future Value of each annual expense :

I = 20000 (expense or investment ), r= 3% , T=10 years

$ 20000 in first 10 years :

Applying Future Value Compunding interest formula :

FV = I * (1+R^t)

=20000* (1+ 0.03 ^10)

= 20000 * (1.34391)

= 26878.32

$ 30000 in next 10 years :

FV = I * (1+R^t)

=30000* (1+ 0.03 ^10)

= 30000 * (1.34391)

= 40317.49

Calculation of future value of expense at the time of retirement :

Current age = 23

Retirement Age = 60

Years to Retire = 60- 23 = 37

Requirement Amount = 50000

FV = I * (1+R^t)

=50000* (1+ 0.03 ^37)

= 50000 * (2.98522)

= 149261.33

Ans 2. Calculation of total savings at the time of retirement :

FV at the time of retirement = 149261.33

Income Reqired at Retirement	149261	Amount required from 60th year
Retirement Age	60	Year
Expected Life after Retirement	80	Year
Retirement Period	20	(80-60)
Rate of return on Corpus	10%	Per Annum
Inflation Rate	3%	Per Annum
Inflation Adjusted Rate of Return	6.80%	(1+Return)/1+Inflation Rate))-1, Per Annum
Per	1
Value	12
Retirement Corpus	$2,345,534.92	PV Funvtion

Savings at time of retirement :

Retirement Corpus(Future Value)	$2,345,534.92	Amount
Years to Retire	25	year
Expected Rate of Return where the savings will be invested	10%	per annum
Per	1
Months in aYear	12
Amount required at achieve requirement corpus	$1,753.16	Savings Per Month