1.How much in annual income will the Jordans require at retirement in three years when inflation averages 4 percent per year? Round off to the nearest $100.

2.Assume that John will retire July 31, 1998.The Jordans will require the annual income computed in question 1 over their life expectancy.Assume the income stream will remain constant over years (i.e., there will be no inflation.)The payments will be received at the beginning of each year. How much capital would the Jordans require at John's retirement to generate their desired income stream? Assume an 8 percent discount rate for the whole retirement period.

3.The Jordans are worried about the 8% rate of return on their investment(s) may not be sustainable over a long period. They wish to be prepared. Assume 8% interest rate for the first 8 years of retirement and 6% of the remaining period. How much capital do the Jordans require?

4.What will the value of the Jordans' investment portfolio at ABC Securities grow to on July 31, 1998, if the expected rate of return is 8 percent?

5.What will be the value of the Individual Retirement Accounts on July 31, 1998, if they grow 8 percent annually?

6.What will the 401(k) grow to on July 31, 1998, assuming an 8 percent annual return?Remember to take into account the annual additions made at the end of each year.

7.What is the lump-sum equivalent of the social security benefits the Jordans will receive? Ignore cost-of-living increases. Assume benefits will be paid annually; the first payment will occur on August 1, 1998. Use the same life span given in the case. Compute the present value using an 8 percent discount rate.

8.According to your calculations, will the Jordans be able to achieve their retirement income objective?