Prepare a spreadsheet indicating the value of retirement

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Reference no: EM132072442

Retirement Fund

Parameters
Current Year	2016
Age	37
Current Savings	$259,000
Rate of Return on Retirement Savings	7.0%
Current Annual Salary	$145,000
Expected Annual Salary Increase	2.0%
% of Salary Contributed	6.0%
Expected Age of Retirement	65
% Employer Contribution	5.0%
Annual Employee (tax free) Contributions	$6,000
Inflation Rate	2.00%

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%?

I need help figuring out how to prepare a table in excel for this. I completed one already but it was not what the professor was looking for. He showed the class how to do it but was going to fast in his lecture. I was only able to copy down what I could. This is what he told us to start with..

Current Year	Age	Beginning savings	Current Salary	salary contributed	Employer contribution	Fixed contribution	Ending savings
2016	37	259000	145000	8700	7250	6000	300617

The final answer for part one is $4,225,518. In my origional excel, I basically added contributions per year along with the rate of return on retirement savings from the final amount in the retirement fund.

My question is, what calculations in excel should I use to get to my answer and how do I get to the final $4,225,518? Is there any way someone could show me the formulas in excel?

Reference no: EM132072442

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