Reference no: EM131011093

This is just a scenario based on the information pasted below: Budget profile for a medical Resident monthly Budget Actual Current Monthly salary before tax $5,000 Retirement deduction before taxes $350 pretax contribution $300 Housing $900 utilities $70 $65 Food $700 $500 Gas $125 $100 Car payment $400 cell phone $50 misc expenses $200 Total Expenses per month $2,335 Total Savings per month $2,665 Estimated savings per year $31,980 using this data above the bottom two parts should be completed Analysis : Using the budget in part 1; Use as many time lines as you need forecast all your projected savings(investments) to get each investments future value. You will have to determine your PV, I/y, N, PMT then calc FV If you don’t have any idea on the I/y you could use 5 or 6% to be conservative. N depends on your current age and when you think you will retire. Savings 401k or (403B) whichever you use IRA’s…. Home Ect……. Once you add up all the future values from step 2 above, and do a time line to determine how much you will be able to spend each year assuming you are going to spend all your money. I.e. your future value will be 0. To calculate N, you have to make a lot of assumptions. For example, if you are planning on retiring at age 65 and think (hope) you will life until you are 90 (25 years) your N will be 25. Week 4 Part 2 B (must be completed in Excel) Scenario Analysis: Run at least 3 different scenarios to see the impact of decisions. Some examples may include: What happens if you delay start of Savings for 5 years? What happens if you work 3 more years? What if the interest rate is higher/lower? What if you have more to save after student loans are paid off?