The salary of the employee is a scaling factor that makes no difference to the results.
We assume a salary of $100,000 in the first year of employment.
Solver is user to find the contribution rate (cell I5) that leads to zero final balanvce (cell H30)
This worksheet allows you to calculate the cumulative biv
distribution. The function is BIVAR(X,Y,RHO). X is the va
variable, Y is the value of the second variable. RHO is th
correlation. See example below.
DO NOT FORGET TO ENABLE MACROS. OFFICE 200
Prob of Death
Within 1 year
Probability of Death
for a man aged 60
PV of Expected Payout
PV of Expected Cash Inflow per $1 of prem