Hi I have a Uni exam tomorrow in my Personal finance module, I am going through the revision questions only I have been stuck on the same question for a while now (Headbang). Any help would be appreciated.
You have an annual income of £18,000 of which £2,000 each year is invested in a pension fund. The contributions to the fund are made over 40 years, and the average rate of return on the fund is 3.5% p.a. in real terms. The expected life expectancy at retirement is 4.5% p.a. What annual pension should you receive?
I also need to be able to work it out using Excel, using functions such as FV, PMT, PV.
I have the answers to the question, I just need to know how to get to the answer;