You are 55 years old and expect to work for 5 years more

Question

You are 55 years old and expect to work for 5 years more, saving Rs 1.25 lac a year. Appropriate interest rate = 10 percent.

(a) If you wish to withdraw Rs 75,000 a year for the following 15 years, how much would you need in the bank 5 years from now?

(b) What is its current worth?

(c) If you already have Rs 2 lac in your bank account, what would be your bank balance when you retire?