a-1. With a 3.0% Inflation rate (Spreadsheet 21.2), by how much would your retirement annulty grow if you increase the savings rate by 1.3%? (Round your answer to 2 decimal places.) Growth in retirement annuity a-2. Is the benefit greater in the face of Inflation? Yes No 2 30 C D E F 1 Retirement Years Income Growth Rate of Inflation Savings Rate ROR TROR 25 .07 103 06 0291 3 Age Income Deflator Saving Cumulative Savings Consumption 50,000 1.00 7,500 7,500 42,500 5 31 53,500) 1.03 8,025 15,975 44,150 9 35 70,128 1.16 10,519 61,658 51,419 19 45 137,952 1.56 20,693 308,859 75,264 29 55 271,372 2.09 40,706 943,477 110,167 39 65 533,829 2.81 80,074 2,457,518 161,257 Total 7.445,673 1,116,851 Real Annuity 49,668 40 A Retirement Years 25 Age 2 B Income Growth 07 Income 50000 =B4*(1+$B$2) =B38*(1+$B$2) =SUM(B4:B39) o D E Rate of Inflation Savings Rate ROR TROR 03 .15 .06 =(E2-C2Y1+C2) Deflator Savings.Cumulative Savings rConsumption =B4*$D$2 =D4 =(B4-D4/C4 =C4"{1+$C$2) =B5*$D$2 =E4*(1+$E$2)+D5 =(B5-D5yC5 =C38*(1+$C$2) =B39"$D$2 =E38*(1+$E$2)+D39 (B39-D39)/C39 =SUM(D4:D39) | Real Annully =PMT($F$2, $A$2,-$E$39/$C$39,0,0) 4 39 40 65 Total