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Suppose that Kenji s 40 years old and has no retirement savings. He wants to begin saving for retirement, with the first payment coming one year from now. He can save $15,000 per year and will invest that amount in the stock market, where it is expected to yield an average annual return of 5.00% return. Assume that this rate will be constant for the rest of his's fe. In short, this scenario fits all the criteria of an ordinary annuity Kenji would like to calculate how much money he will have at age 60 Use the following table to indicate which values you should enter on your financial calculator. For example, you are using the value of 1 for use the selection ist above N in the table to select that value 0 Input Keystroke Output N 1/Y PV PMT FV Using a financial calculator yields a future value of this ordinary annuity to be approximately tage 60 Kenji would now like to calculate how much money he 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 Nose the selection list above 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 Kenji expects to live for another 30 years if he retires at age 60, with the same expected percent return on investments in the stock market He would like to calculate how much he 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, ir 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 60 Keystroke N I/Y PV PMT Output 0 FV 7 Using a financial calculator, you can calculate that Kenji can withdraw at the end of each year after retirement (assuming retirement at age 60), assuming a fixed withdrawal each year and $0 remaining at the end of his life Kenji expects to live for another 25 years if he 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 use the selection list above N in the table to select that value. Input Amount saved for retirement by age 65 Keystroke I/Y PV Output 0 N PMT FV 2 at the end of each year after retirement at age 65, assuming Using a financial calculator, you can calculate that Kenji can withdraw a fixed withdrawal each year and $0 remaining at the end of his life

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