1. For how many years a retirement fund will last if one follows 4% approach to retirement distribution at the beginning of every year? Assume expected return and inflation to be 6% and 4.5% respectively?

2. Marcus has been employed by GCD Enterprises for 15 years, and currently earns $75,000 per year. Marcus saves $15,000 per year. He plans to pay off his home at retirement and live debt free. He currently spends $12,000 per year on his mortgage. Assume payroll taxes to be 7.65%. What do you expect Marcus wage replacement ratio to be based on the above information?