2. Your clients, Kieron and Adanis Martin (age 38), want to retire when they are 65 and want to provide 25 years of income during retirement. Based on their current level of living, they would like to provide for $115,000/ year (in current dollars) during retirement. They currently have $300,000 in Roth IRAs. Social Security will provide $40,000/ year in current dollars. They have made the following rate estimates: 3.0% inflation before and after retirement, 12.0% return on investments before retirement, and 8.0% return on investments after retirement. Assuming they are willing to liquidate the principal during retirement and they will save at the end of the period and withdrawal at the beginning, find: a) How much they will need to save each year toward retirement in order to take annual distributions, and =PMT(9%,27,300000,$630596.42,0)=$23,781.68 b) How much they will need to save each month in order too take monthly distributions. =PMT(5%/12,4012,300000,560488.74,0)=$1,079.30 3. Using the information in Problem 2, redo the needs analysis for an ordinary annuity and an annuity due assuming Kieron and Adanis need \$115,000/year for 10 years after which their needs would decrease to $90,000 for the remainder of their lives. 4. Redo Problem 2 changing the rate of return on investment to 7.0% before and after retirement and calculate the annual savings needed to make annual distributions using: a) The present and future values, then b) The cash flow calculator