Part 2: (must be completed in Excel) Scenario Analysis: Run at least 3 different scenarios to see the impact of decisions. Some examples may include: What happens if you delay start of Savings for 5 years? What happens if you work 3 more years? What if the interest rate is higher/lower? What if you have more to save after student loans are paid off?

Here is what I have completed for part 1:

Instrument	PMT	I/Y	N	FV
savings in 401K	500	5%	35	568046.21
Invest in equities	500	8%	35	1146941.24
Total				1714987.45

Hence, total savings at the time of retirement is $1,714,987.45.

Now, we use another annuity formula to find the amount which can be spent per month for next 25 years starting from the age 65.

PV is given by the formula

Here, PV = 1714987.45; n = 25 * 12 = 300 ; r = 5% (assume)

P = $10,025.65

[1-(1+r)-] P= Periodic Payment r=rate per period n = number of periods [1-(1+r)-] P= Periodic Payment r=rate per period n = number of periods