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How to solve using BA II Calculator? Assume that today you are tuning 25 years old,...

How to solve using BA II Calculator? Assume that today you are tuning 25 years old, and you would like to start your retirement account. You plan to invest $25,000 per year with your first deposit being made today. You are investing in a retirement fund that will return 5.6%. You plan to retire at the age of 70 and expect to live 25 years after your retirement. Assuming this information, how much can you spend each year after you retire?

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Answer #1

You are now 25 year old and retire in 70 year. SO total number of year of saving is 45 year.

Total Value of saving at end of year 70 year age is calculated in excel and screen shot provided below:

Total saving at time of retirement will be $5,002,412.94.

Now, he expect to live for another 25 year. So annual withdrawal is calculated in excel and screen shot provided below:

He can withdraw $376,574.07 each year.

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