Estimate rate of inflation for your currency going forward

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Reference no: EM131403318

Money Management Formative Assignment (interim).

This assignment is designed to show how savings or investments can be built up over time and then drawn down during retirement.

Use Excel.

Specify how many years to retirement and how long it will be.

Choose and average rate of return on your savings/investments.

Estimate the rate of inflation for your currency/country going forward.

On a yearly basis, show how much you put away, escalated for inflation (this would be the left hand column of your spreadsheet).

Devote the right-hand column to the capital as it grows from both earnings and yearly money put in. Choose your one middle column or columns.

Show clearly the capital you reach at retirement (the "nest-egg").

Continue on the same spreadsheet as you draw down the nestegg (still escalated by inflation) at a rate which lets you bring the capital to zero when your retirement ends.

Follow our convention that payments and interest earned are once a year events at the end of the year.

Reference no: EM131403318

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