Question

Compute problems 4-5, 4-7, 4-12, 4-24,5-4, 5-8, and 5-17 from the textbook.determine how much money the individual should save per year based on the following information:The individual is currently 30 years old, plans to retire at age 70, and expects to live until 90. The individual would like to have $75,000 a year in retirement income. How much does he need to save per year until he retires? He assumes an annual return of 4% before inflation. He plans on annual deposits and withdrawal at the end of the year. Hint: start with how much his retirement savings needs to be when he retires. **This assignment supposed to be in excel if you can help me understand how I supposed to be it in excel that's perfect if not I'll keep looking at videos**

Answer 1

Present Age	30
Retirement age	70
investment years	40
required return	4%
Years for which amount will be received	20
Annual desired income	$ 75000

Amount required at the age of 70 to receive $75000 per annum for next 20 years

=Annual required amount * PVAF (4%,20 years)

=$75000 * 13.59

=$1,019,250

Amount required to be deposited per annum to get $1,019,250 at the end of 40 years

=Amount required at the age of 70 FVAF (4%,40 years)

= $1,019,250 97.7865

= $ 10,423 (approx)