You want to be able to withdraw $35,000 from your account each year for 15 years...

Question

Question

You want to be able to withdraw $35,000 from your account each year for 15 years after you retire. If you expect to retire in

Answer 1

Answer #1

At the time of retirement:

Nper=15, rate=5.4%, PMT=35000, PV=?

D | A 1 nper 2 rate 3 PMT PV B 15 5.40% 35000 |=PV(B2,B1,B3,0,0) PV(rate, nper, pmt, [fv], [type])

ДА 1 nper 2 rate 3 PMT 4 PV 15 5.40% 35000 ($353,661.83)

a) Hence, you need $353661.83 when you reture.

b) Before retirement, nper=25*12=300 month, rate=6.2%/12=0.517%, FV=353661.83, PMT=?

I G IDE FV | $353,661.83 nper 300 rate L 0.52% PMT |=PMT(E3,E2,0,1,0) PMT(rate, nper, pv, [fv], [type])

I DE FV $353,661.83 nper 300 rate 0.52% PMT ($494.83)

Hence, you need to save $494.83 at end of each month to reach your goal.

c) You deposit in to the retirement account= 494.83*300=$148448.24

d. Total payment received during retirement= 35000*15=$525000

e. Total interest received= 525000-148448.24=$376551.76

Answer 2

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