Answer to Question #123557 in Finance for yash moryani

Question #123557
Neha would retire 30 years from today and she would need ₹ 6,00,000 per year after her retirement, with the first retirement funds withdrawn one year from the day she retires.
Assume a return of 7% per annum on her retirement funds and if her planning is for 25 years after retirement, Calculate:
a. How much lumpsum she should deposit in her account today so that she has enough funds for retirement?
b. How much she should deposit each year so that she has enough funds for retirement?
1
Expert's answer
2020-06-29T16:11:29-0400


a) Cash PV annuity factor


PV (annuity) with payment of Rs.



PV today



b) FV annuity factor




A = PV (annuity)/ FV annuity factor




Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS