3. Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire in 33 years and anticipate they will need funding for an additional 24 years. They determined that they would have a retirement income of $54,000.00 in today's dollars but that they would actually need $77,259.00 in retirement income (in today's dollars) to meet all of their objectives. a. What is their annual shortfall at retirement assuming inflation of 3 percent per year? Click on the table icon to view the FVIF table: 1. b. At the time that they retire, how much additional amount must they have accumulated to fund their retirement needs, assuming 3 percent inflation and a rate of return of 12 percent? Click on the table icon to view the PVIFA table: 2 c. Calculate the additional amount that Peter and Blair must save each year for the next 33 years if they wish to completely fund their income shortfall. Click on the table icon to view the FVIFA table: 3. a. Their annual shortfall at retirement assuming inflation of 3 percent per year is $ (Round to the nearest cent.) b. Assuming 3 percent inflation and a rate of return of 12 percent, the additional amount they must have accumulated to fund their retirement needs at the time that they retire is $ c. The additional amount that Peter and Blair must save each year for the next 33 years if they wish to completely fund their income shortfall is $ (Round to the nearest cent.) (Round to the nearest cent.) 1: Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Compound Sum of $1 (FVIF) n 2.00% 3.00% 4.00% 5.00% 24 1.6084 2.0328 2.5633 3.2251 25 1.6406 2.0938 2.6658 3.3864 26 1.6734 2.1566 2.7725 3.5557 27 1.7069 2.2213 2.8834 3.7335 28 1.7410 2.2879 2.9987 3.9201 29 1.7758 2.3566 3.1187 4.1161 30 1.8114 2.4273 3.2434 4.3219 31 1.8476 2.5001 3.3731 4.5380 32 1.8845 2.5751 3.5081 4.7649 33 1.9222 2.6523 3.6484 5.0032 34 1.9607 2.7319 3.7943 5.2533 35 1.9999 2.8139 3.9461 5.5160 Present Value of an Annuity (PVIFA) Pa n 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 13 11.3484 10.6350 9.9856 9.3936 8.8527 8.3577 7.9038 7.4869 7.1034 14 12.1062 11.2961 10.5631 9.8986 9.2950 8.7455 8.2442 7.7862 7.3667 15 12.8493 11.9379 11.1184 10.3797 9.7122 9.1079 8.5595 8.0607 7.6061 16 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 8.8514 8.3126 7.8237 17 14.2919 13.1661 12.1657 11.2741 10.4773 9.7632 9.1216 8.5436 8.0216 18 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 19 15.6785 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 20 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 21 17.0112 15.4150 14.0292 12.8212 11.7641 10.8355 10.0168 9.2922 8.6487 22 17.6580 15.9369 14.4511 13.1630 12.0416 11.0612 10.2007 9.4424 8.7715 23 18.2922 16.4436 14.8568 13.4886 12.3034 11.2722 10.3711 9.5802 8.8832 24 18.9139 16.9355 15.2470 13.7986 12.5504 11.4693 10.5288 9.7066 8.9847 25 19.5235 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.8226 9.0770 26 20.1210 17.8768 15.9828 14.3752 13.0032 11.8258 10.8100 9.9290 9.1609 27 20.7069 18.3270 16.3296 14.6430 13.2105 11.9867 10.9352 10.0266 9.2372 Future Value of an Annuity (FVIFA) n 5.00% 6.00% 7.00% 8.00% 9.00% 24 44.5020 50.8156 58.1767 66.7648 76.7898 25 47.7271 54.8645 63.2490 73.1059 84.7009 26 51.1135 59.1564 68.6765 79.9544 93.3240 27 54.6691 63.7058 74.4838 87.3508 102.7231 28 58.4026 68.5281 80.6977 95.3388 112.9682 29 62.3227 73.6398 87.3465 103.9659 124.1354 30 66.4388 79.0582 94.4608 113.2832 136.3075 31 70.7608 84.8017 102.0730 123.3459 149.5752 32 75.2988 90.8898 110.2182 134.2135 164.0370 33 80.0638 97.3432 118.9334 145.9506 179.8003 34 85.0670 104.1838 128.2588 158.6267 196.9823 10.00% 11.00% 12.00% 88.4973 102.1742 118.1552 98.3471 114.4133 133.3339 155.6196 109.1818 127.9988 150.3339 176.8501 121.0999 143.0786 169.3740 200.8406 134.2099 159.8173 190.6989 227.9499 148.6309 178.3972 214.5828 258.5834 164.4940 199.0209 241.3327 293.1992 181.9434 221.9132 271.2926 332.3151 201.1378 247.3236 304.8477 376.5161 222.2515 275.5292 342.4294 426.4632 245.4767 306.8374 13.00% 136.8315 384.5210 482.9034 35 90.3203 111.4348 138.2369 172.3168 215.7108 36 95.8363 119.1209 148.9135 187.1021 236.1247 271.0244 299.1268 380.1644 341.5896 431.6635 546.6808 484.4631 618.7493