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Suppose that Alyssa is 35 years old and has no retirement savings. She wants to begin saving for retirement, with the first payment coming one year from now. She can save $10,000 per year and will invest that amount in the stock market, where it is expected to yield an average annual return of 12.00% return. Assume that this rate will be constant for the rest of her's life. In short, this scenario fits all the criteria of an ordinary annuity. Alyssa would like to calculate how much money she will have at age 50. Use the following table to indicate which values you should enter on your financial calculator. For example, if you are using the value of 1 for N, use the selection list above N in the table to select that value. 0 Input Keystroke Output N I/Y PV PMT FV ? Using a financial calculator yields a future value of this ordinary annuity to be approximately at age 60. Alyssa would now like to calculate how much money she will have at age 65. Use the following table to indicate which values you should enter on your financial calculator. For example, if you are using the value of 1 for N, use the selection list above N in the table to select that value. 0 Input Keystroke Output N I/Y PV PMT FV ? Using a financial calculator yields a future value of this ordinary annuity to be approximately at age 65. Alyssa expects to live for another 30 years if she retires at age 50, with the same expected percent return on investments in the stock market. She would like to calculate how much she can withdraw at the end of each year after retirement. Use the following table to indicate which values you should enter on your financial calculator in order to solve for PMT in this scenario. For example, if you are using the value of 1 for N, use the selection list above N in the table to select that value. Input Amount saved for retirement by age 50 Keystroke I/Y Output 0 N PV PMT FV ? Using a financial calculator, you can calculate that Alyssa can withdraw at the end of each year after retirement (assuming retirement at age 50), assuming a fixed withdrawal each year and so remaining at the end of her life. Alyssa expects to live for another 25 years if she retires at age 65, with the same expected percent return on investments in the stock market. Use the following table to indicate which values you should enter on your financial calculator. For example, if you are using the value of 1 for N, use the selection list above N in the table to select that value. Input Amount saved for retirement by age 55 0 Keystroke I/Y PV Output ? N PMT FV at the end of each year after retirement at age 65, Using a financial calculator, you can calculate that Alyssa can withdraw assuming a fixed withdrawal each year and $0 remaining at the end of her life

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