4. Use Excel to answer the following question. Construct a spreadsheet yourself to calculate the answers.

How valuable is it if a fund saves you 50 basis points (i.e. 0.5%) per year in expenses? The following gives a sense:

a)If you save $40,000/year and invest at a 4.0% rate of return, how long does it take to save $2million?

b)If you save at $40,000/year and invest at a 4.5%, how long will it take?

c)If you have $2million and can invest at a 4%, how many dollars can you spend per year and have nothing left after 30 years?

d)How much can you spend per year if you can invest at 4.5%?