Question

$ for Savings (from Budget):	$                                                                                                              157,131
Match:	3%
Expected Return:	7%
Years:	35
Question		Part Two
#1	Based on you’re the money available for savings from your budget, how much money would you have when you turn 65, assuming you earn a 7% annual return on your investments?
	Annual Savings (be sure to include the employer match)
	Total Amount at age 65
#2	During retirement, your return drops to 5% annually as you decide to invest more conservatively to protect your principal. How much could you spend each year and not have your money run out before age 95?
Part Three
#1	Assuming you have a retirement savings goal of $3 million at age 65, how much would you need to save monthly to meet that goal if you can earn a 7% annual return on your investments (assume you have nothing saved today and 35 years until retirement)?

Answer 1

	#1
	a	Annual Savings from budget	$157,131
	b=a*3%	Employer Match	$4,713.93
	c=a+b	Annual Savings	$161,844.93
	Rate	Annual return	7%
	Nper	Number of years of savings	35
	Pmt	Annual savings	$161,844.93
	FV	Total amount at age 65	$22,372,937.90
	#2
	Rate	Annual return	5%
	Nper	Number of years in retirement=95-65	30
	Pv	Amount available at the time of retirement	$22,372,937.90
	PMT	Amount   you can spend each year	$1,455,391.72
	Part3
	#1
	Rate	Annual monthly return=((1+0.07)^(1/12))-1	0.5654%
	Nper	Number of Months of savings=35*12	420
	Fv	Retirement goal	$3,000,000
	PMT	Amount needed to be saved each month	$1,752.94