and

Blair

recently reviewed their future retirement income and expense projections. They hope to retire in

26

years and anticipate they will need funding for an additional

18

years. They determined that they would have a retirement income of

$64,000.00

in today's dollars but that they would actually need

$90,865.00

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:

LOADING...

.

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

9

percent? Click on the table icon to view the PVIFA table:

LOADING...

.

c. Calculate the additional amount that

Peter

and

Blair

must save each year for the next

26

years if they wish to completely fund their income shortfall

Please round to the nearest cent! If the answers are incorrect I will be giving a thumbs down!