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  • Tutorial 10: Retirement Planning

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    LIEW JIA YONG
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    A couple wants to save RM300,000 for retirement in 18 years despite 4% annual inflation. They plan to contribute RM20,000 each year earning 6% annual returns. Calculations show that with these contributions and rates of return and inflation, they will reach their retirement savings goal of RM300,000 in current dollars.

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    A couple wants to save RM300,000 for retirement in 18 years despite 4% annual inflation. They plan to contribute RM20,000 each year earning 6% annual returns. Calculations show that with these contributions and rates of return and inflation, they will reach their retirement savings goal of RM300,000 in current dollars.

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    14 views1 page

    Tutorial 10: Retirement Planning

    Uploaded by

    LIEW JIA YONG
    A couple wants to save RM300,000 for retirement in 18 years despite 4% annual inflation. They plan to contribute RM20,000 each year earning 6% annual returns. Calculations show that with these contributions and rates of return and inflation, they will reach their retirement savings goal of RM300,000 in current dollars.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Tutorial 10: Retirement Planning

    1. A couple wants to accumulate a retirement fund of RM300,000 in current dollars in 18


    years.  They expect inflation to be 4% per year during that period.  If they set aside
    RM20,000 at the end of each year and earn 6% on their investment, will they reach their
    goal?

    PV=300,000                                       PMT=20,000
    I=4%                                                  I=6%
    n=18                                                    N=18
    Fv= 607,744.96                           FV=618,113.05

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