Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

With no taxes or inflation (Spreadsheet 21.1), what would be your retirement annuity if you Increase the income growth by 0.5% ? E 1 2

With no taxes or inflation (Spreadsheet 21.1), what would be your retirement annuity if you Increase the income growth by 0.5%?

image text in transcribed

E 1 2 3 4 5 9 19 29 39 40 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 Rate .15 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$2 Total =SUM(B4:B39) ESUM(C4:C39) D E ROR .06 Cumulative Savings Consumption =C4 =B4-C4 =D4*(1+$D$2)+C5 =B5-C5 =D38*(1+$D$2)+C39 =B39-C39 Retirement Annuity =PMT($D$2,$A$2,-$D$39,0,0)

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_2

Step: 3

blur-text-image_3

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

Multinational Business Finance

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

16th Edition

013749601X, 978-0137496013

More Books

Students also viewed these Finance questions