# The pension fund model is streamlined, perhaps too much. It does all of the calculations concerning.

The pension fund model is streamlined, perhaps too much. It

does all of the calculations concerning cash flows in row 20. James decides he

would like to break these out into several rows of calculations: Beginning

cash (for 2006, this is the amount allocated; for other years, it is the unused

cash, plus interest, from the previous year), Amount spent on bonds (positive

in 2006 only), Amount received from bonds (positive for years 2007 to 2020

only), Cash available for making pension fund payments, and (below the Amount

required row) Cash left over (amount invested in the fixed interest

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The pension fund model is streamlined, perhaps too much. It

does all of the calculations concerning cash flows in row 20. James decides he

would like to break these out into several rows of calculations: Beginning

cash (for 2006, this is the amount allocated; for other years, it is the unused

cash, plus interest, from the previous year), Amount spent on bonds (positive

in 2006 only), Amount received from bonds (positive for years 2007 to 2020

only), Cash available for making pension fund payments, and (below the Amount

required row) Cash left over (amount invested in the fixed interest rate).

Modify the model by inserting these rows, enter the appropriate formulas, and

run Solver. You should obtain the same result, but you get more detailed

information.

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