With no taxes or inflation (Spreadsheet 21.1), what would be your retirement annuity if you Increase the savings rate by 3.0%?

retirement annuity?

SPREADSHEET 21.1 The savings plan E Savings Rate .15 excel Please visit us at www.mhhe.com/bkm 1 2 3 4 5 9 19 29 39 40 A B Retirement Years Income Growth 25 .07 Age Income 30 50,000 31 53,500 35 70, 128 45 137,952 55 271,372 65 533,829 Total 7,445,673 Savings 7,500 8,025 10,519 20,693 40,706 80,074 1,116,851 D ROR .06 Cumulative Savings 7,500 15,975 61,658 308,859 943,477 2,457,518 Retirement Annuity Consumption 42,500 45,475 59,608 117,259 230,666 453,755 192,244 1 2 3 4 5 39 40 A B Retirement Years Income Growth Savings Rate 25 .07 .15 Age Income Savings 30 50000 =B4*$C$2 31 =B4 (1+$B$2) =B5 $C$2 65 =B38*(1+$B$2) =B39 $C$2 Total ESUM(B4:B39) ESUM(C4:C39) D E ROR .06 Cumulative Savings Consumption I=C4 =B4-C4 =D4*(1+$D$2)+C5 =B5-C5 =D38*(1+$D$2)+C39 --B39-C39 Retirement Annuity =PMT($D$2,$A$2,-$D$39,0,0)