Answer explanation

2. (a) You have been appointed as financial planner of Mr. Arijit. He is 35 years old at present and would be retiring at age 60 yrs. He expects to live up to 80 yrs. You have to plan in such a way that Arijit starts getting Rs. 25,000 p.m. at the end of each month after he retires and keep receiving till his survival. If an expected return during accumulation is 7% p.a, what is saving required per year to meet his retirement needs