What is the net present value of the retirement fund

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Reference no: EM132072456

Retirement Planning

Current Year	2016
Age	37
Current Savings	$259,000
Rate of return on retirement savings	7.00%
Current Annual Salary	$145,000
Expected Annual Salary Incease	2.00%
% of Salary contributed	6.00%
Expected Age of retirement	65
% employer contribution	5.00%
Annual Employee (tax free) contributions	$6,000
Inflate Rate	2.00%

In excel

2a) Prepare a spreadsheet indicating the value of retirement fund on a yearly basis when retiring at age of 65.

2b) what is the net present value of the retirement fund at retirement age assuming an inflation rate of 2.0%?

2d) prepare a data table when the rate of return on investments varies from 5% to 9% with 0.5% increment and contribution by employers varies from 3% to 10% with a 1% increment. Attach table to this assignment.

2e) What should be the annual employee contribution if she desires to retire with $2,300,000 in savings?

Reference no: EM132072456

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