Need help with my home work, due on May 13th

rajahm

New member
Joined
May 11, 2010
Messages
3
Please help me out.


Retirement Planning Scenario:

I am 45 and a mathematics instructor with a take home salary of $4321. Each year, I expect to earn a cost of living increase of 1.85% on average each year. When I retire, I want a life style during retirement that’s equivalent to $2250 per month (in2009) dollars). I want to be financially ready to retire when I’m 65 years old. With my family health history and career, I have a life expectancy of 77 years. From other investments, pension funds and social security, I expect to receive monthly payments during my retirement that equal to 21% of my monthly salary during the last year of my career.

I would like to make monthly payments into a retirement fund”, Do you think this is a feasible?

Retirement formula:



A = PMT x {(1+ APR) (ny) -1}
N
_____________________
APR
N
PMT = (1 + 0.0185) (12 x 30) -1)
12

PMT = 1.541666667+1 = 1.001541667 ^360
= 1.741196687 – 1 = 0.741196686
1.541666667

4321 x .480776228 = 2,077.434081

2250 x 12= 144 months
2250 x 144 = 324,000

PMT need to save per month for 20 yrs deposit in retirement fund.
324,000
2,077.434.81 = 155.9616274
 
rajahm said:
Please help me out.


Retirement Planning Scenario:

I am 45 and a mathematics instructor with a take home salary of $4321. Each year, I expect to earn a cost of living increase of 1.85% on average each year. When I retire, I want a life style during retirement that’s equivalent to $2250 per month (in2009) dollars). I want to be financially ready to retire when I’m 65 years old. With my family health history and career, I have a life expectancy of 77 years. From other investments, pension funds and social security, I expect to receive monthly payments during my retirement that equal to 21% of my monthly salary during the last year of my career.

I would like to make monthly payments into a retirement fund”, Do you think this is a feasible?

Retirement formula:



A = PMT x {(1+ APR) (ny) -1}
N
_____________________
APR
N
PMT = (1 + 0.0185) (12 x 30) -1)
12

PMT = 1.541666667+1 = 1.001541667 ^360
= 1.741196687 – 1 = 0.741196686
1.541666667

4321 x .480776228 = 2,077.434081

2250 x 12= 144 months
2250 x 144 = 324,000

PMT need to save per month for 20 yrs deposit in retirement fund.
324,000
2,077.434.81 = 155.9616274

Please share with us your work, indicating exactly where you are stuck - so that we may know where to begin to help you
 
That's my work. I just followed my book. I just want to make sure that I am doing righ? I have typed the questions as well.
Thanks for your help!
 
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