5. Funding the nest ege shortfall Determining Retirement Shortfall David and Ansa have 25 years to retirement. They are takng a personal finance course and have calculated their projected retirement income and investment needs, Based on their calculations and takng into account their Social security and pension incomes, they have a projected shortall of $5,250,00 per year. Interest Factors - Future Value Interest Factors - Future Value of an Annuity The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Rosenberg, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Complete the following table by caiculating inflation adjusted annual shortfall for David and Anisa at 5%. Then recaiculate the shortall based on the top rate provided by Dr. Rosenberg. Funding the shortfall In addtion to determining a realistic inflation rate, David and Anisa talked to their financial advisor to understand rates of return now and after ther reach retirment. First, their advisor projects that in 25 years, they can realistically earn 5% on their nest egg. Second, he recommends an investment vohide that is earning 6% annually. Complete the following tabie using the inflation-adjusted annual shortfall at 5% as previously calculated