Question: Write a function named MyRandomRetireCap that projects the retirement capital. The projected retirement capital is simulated on the basis of the initial capital, plus future
Write a function named MyRandomRetireCap that projects the retirement capital.
The projected retirement capital is simulated on the basis of the initial capital, plus future savings contributions, projected up until the retirement age, with compounded returns. The yearly returns are random (Normal distribution) and can be positive or negative. The parameters of the function are:
- Initial age, initial capital, yearly savings amount, retirement age, expected return, and standard deviation of the returns.
Then write a procedure that calls your function with (35, 150000, 8000, 65, 3.5%, 7%) ten thousand times. Display in a message box the frequency of the simulations where the simulated capital is less than 850000
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