a-1. With a 3.0% inflation rate (Spreadsheet 21.2), by how much would your retirement annuity grow if you increase the savings rate by 17%? (Round your answer to 2 decimal places.) Growth in retirement annuity a-2. Is the benefit greater in the face of inflation? O Yes No ment Years Income Growth Rate of Inflation 07 .03 Income Deflator 50,000 1.00 53,500 1.03 70,128 137,952 1.56 271,372 2.09 533,8291 Total 1 7 ,445, 673 1 D E Savings Rate ROR .15 .06 Saving Cumulative Savings 7,500 7,500 8.025 15,975 10,5191 61,658 20,693| 308.859 40,706 943,4771 80,074 2,457,518 ,176,851 Real Annuity TROR .0291 Consumption 42,500 44,150 51.419 75,264 110.167 161,257 49,668 1.16 2.81 Retirement Years 25 Age 30 Income Growth 07 Income 50000 -B4*(1+$B$2) -B38*(1+$B$2) =SUM(B4:B39) C Rate of Inflation Savings Rate ROR TROR 03 .15 06 (E2-C2/(1+C2) | Deflator Savings Cumulative Savings Consumption -B4"$D$2 -04 (B4-D4yC4 1-C4'(1+$C$2) -B5'$D$2 -E4*(1+SES2)+D5 (B5-D5yC5 1-C38*(1+$C$2 -B39"$D$2 -E38*(1+$E$2+D39 -(B39-D39)/C39 SUM(D4:D39) Real Annuity PMT($F$2,SA$2,-SE$39/$C$39,0,0) 31 65 Total