Ankur Kalra is 33 years old finance professional. The house hold expenditure of Mr. Kalra is 20,000/- p.m. to maintain his current living standard. He assumes that his living standard will increase 1.5% annually until his retirement at 60. His life expectancy is 70 years. At retirement he needs 75% of his last year’s expenses. Inflation rate for the next 45 years is expected to be 4% p.a.
Calculate how much would Mr. Kalra require in the first year after his retirement, and how much he has to save at end of every year to accumulate this corpus, if the return on investment is 7% p.a.?
A . Rs. 10,09,656/-, and Rs. 89,508/
B . Rs. 7,63, 992/- and Rs. 90,550/
C . Rs. 8,26,912/- and Rs. 85470/
D . Rs. 9,20,338/- and Rs. 98,862/
Answer: B