Question
You will start your first job in January 2018. Your financial advisor has recommended saving for retirement to ensure you have enough and to leverage
You will start your first job in January 2018. Your financial advisor has recommended saving for retirement to ensure you have enough and to leverage the time value of money. The data for your situation follows:
Starting salary = $60,000 (at end of first year) Annual raises = 5% p.a. Current age = 25 Career = 40 years
ROR during career = 10% Amount needed in first year of retirement = 80% of last years salary Inflation in retirement = 3% p.a.
1. Find the FV at the end of your career and conduct a sensitivity analysis to determine if you will have enough for retirement based on the various given savings rates and RORs. Provide your observations about the results.
THIS QUESTION WILL NEED TO BE DONE ON EXCEL
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