Accounts or retirement corpus fund question.

I calculated using excel and answers are (A) 982837 (B) 74022 per year
Are these answers correct?

I am @still_guessing

..Bro i dont know the answers….

I would like to help him…can u plz send me how to do this question plz..

You can find many retirement calculators online which can be used to validate the answers.

Let the amount required at the start of Neha’s retirement P. At first we have to  find out the value of P.

Inorder to calculate the value of P, we can consider this P as a credit to be paid by yearly installment and the first 6L withdrawn at the beginning of 1st year as down payment and upcoming 6L withdrawals as equated installment amount. Then by using installment formula/concept we can find P value.

A) A value at 7% CI, in 30 years should become P. According to that we can find value of A

B) Again you have to find yearly installment for 30 years to achieve P amount. (If service period and retirement period is same then finding value of B is lot easier i.e
600000*(100/107)^n n-service or retirement time period)

Neha should change her job currently and go for higher ctc jump..
Problem solved

@Time_pass

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retire 30 years from today and she would need ₹ 6,00,000 per year after her retirement, with the first retirement funds withdrawn one year from the day she retires.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? (5 Marks)
b. How much she should deposit each year so that she has enough funds for retirement? (5 Marks)

Can someone help me to get entire calculation in accounting way as looking with complete solve answer? plz

Hello

Can you solve this in accounting way and share you answer sheet plz?

a) Cash PV annuity factor = (1 – (1/(1+r)^n))/r
= (1 – (1/(1+0.07)^25))/0.07
= (1 – (1/(1.07)^25)/0.07
= (1 – (1/5.427)/0.07
= (1 – 0.1842)/0.07
= 0.81574/0.07
= 11.6534

PV (annuity) with payment of Rs. 600000 = 600000*11.6534
= Rs. 6992024

b) FV annuity factor = ((1+r)^n- 1)/r
= ((1+0.07)^30- 1)/0.07
= ((1.07)^30- 1)/0.07
= (7.6122-1)/0.07
= 6.6122/0.07
= 94.46

A = PV (annuity)/ FV annuity factor
= 6992024/94.46
= Rs. 74021 per year

Agree with the above posted numbers but op please keep inflation in mind.

Can you pls tell me what formula did you use to get (A)?

monthly expense 50k
age 30
retirement age 60
life expecancy 70
inflation 3%-4%
existing investments 10 lacs (can vary, but took lowest)
amount required on retirement around 70 lacs (more age expectancy, more amount, more savings required)
monthly savings required at conservative rate 7% around 13500
if future medical expenses added monthly savings becomes 20000
if someone wishing world tour on retirement monthly savings will become 30000

do note, 7% won’t be there after 10 years so one has to be in risky assets in young age and slowly move to conservative assets like pf and fd.

My Question is simple, which one of this is correct for (A) 982837 or 6992024?

@micke , Thanks for sharing, can you pls tell which formula you used for getting A?