00:01
Firstly, we need to calculate how much you will be able to spend each year in retirement.
00:06
So over here evaluating every deposit value first.
00:12
So it is evaluated as $10 ,000 multiplied by 1 wherein we add 0 .08 to the power 65 wherein we subtract 23 to which we subtract 1 divided by 0 .08.
00:29
Equating it we get the value to be $2 ,32 ,120.
00:38
Next evaluating pv value as future value divided by 1 wherein we add annual interest rate to the power number of years.
00:51
Putting in the values $2 ,32 ,120 divided by 1 wherein we add 0 .08 to the power 43.
01:05
So equating it we get the value to be $15 ,862 .53 approximately.
01:18
Next if you begin deposit at age of 30, so we need to calculate the future value.
01:26
So it is evaluated as of deposit first.
01:31
So $10 ,000 multiplied by 1 wherein we add 0 .08 to the power 65 wherein we subtract 30 to which we subtract 1 divided by 0 .08.
01:44
Equating it we get the value to be $4 ,37 ,030.
01:50
So then pv value of withdrawals is evaluated as $4 ,37 ,030 divided by 1 wherein we add 0 .08 to the power 36.
02:06
Equating it we get the value to be approximately $46 ,784 .46.
02:15
Next we need to make the deposit setting at age 30 equal to answer in the first one.
02:25
So increase in deposit value is evaluated as $2 ,32 ,120 wherein we subtract $4 ,37 ,030.
02:42
So we get negative $2 ,04 ,910...