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Calculating Cashflows

R

reachkiran03

New Member
Example Mr. A has Rs.48,00,000/- his yearly expenses is Rs.4,32,000/-p.a, His current age is 58 y, if he lives till 85 y, I would like to calculate the cashflows required to maintain the life style by keeping the inflation @6% for 27 y. How to do the same by using excel sheet.
 
Reachkiran03


Setup a number of columns for each component

Cash = Previous Cash - yearly expense + Interest

Interest = Cash * (1 + Interest rate)

Yearly expense = Previous yearly Expense * (1 + 0.06)

Copy those down 27 rows

look at when you run out of cash

Adjust the Interet Rate and see if that can make up the difference

If it isn't realistic you need another source of funds
 
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