Question

For this discussion forum, write a question relating to your personal finances or the finances of a past/previous employer. The question should be answerable using what you have learned in either of the past two modules. To preserve privacy, you can change the financial numbers, fictionalize the scenarios, and/or change the names of the people involved. Here are some examples of types of questions you could ask:

• Based on the annual amount you will want to withdraw during retirement, how much do you need to contribute to your retirement fund on an annual basis in order to retire in 20 years? Be sure to take into account the amount currently in your retirement fund, the interest rate on your savings, and the number of years you expect to make withdraws.
• You have a child entering first grade and want to have enough saved to pay for four years of college tuition at a typical in-state school. How much do you need to save on an annual basis in order to have enough to cover college tuition? Be sure to take into account the current tuition at in-state schools, the projected inflation rate for tuition, and the interest rate of your savings.

Answer 1

Mr. Venu gopal aged 38, is a government employee. he wants to save the part of his salary in the retirement fund to make his life safe and secure after his retirement. So, he wants to withdraw 100000 anually after the retirement to meet all his household and medial expenses. So, he started to allot a part of his salary for his retirement. How much do he need to invest annually for the next 22 years in order to withdraw 100000 after his retirement annualiy given the fund also generates the returns of 6% per annum??