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    Hi I have a Uni exam tomorrow in my Personal finance module, I am going through the revision questions only I have been stuck on the same question for a while now :confused: . Any help would be appreciated.

    Question:

    You have an annual income of £18,000 of which £2,000 each year is invested in a pension fund. The contributions to the fund are made over 40 years, and the average rate of return on the fund is 3.5% p.a. in real terms. The expected life expectancy at retirement is 4.5% p.a. What annual pension should you receive?

    Preferably, I also need to be able to work it out using Excel, using functions such as FV, PMT, PV.

    I have the answers to the question, I just need to know how to get to the answer;

    Pension fund value: £169,100.56

    Annual Pension: £17,982.11

    Thanks
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    Thanks people
 
 
 
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