Anne-Marie and Yancy calculate their current living expenditures to be $82,000 a year. During retirement they plan to take one cruise a year that will cost $5,000 intoday's dollars.Anne-Marie estimated that their average tax rate in retirement would be 13 percent. Yancy estimated their Social Security income to be about $22,659 and their retirement benefits are approximately $38,459. Use this information to answer the followingquestions:

a. How muchincome, intoday's dollars, willAnne-Marie and Yancy need in retirement assuming 70 percent replacement and an additional $5,000 for thecruise?

b. Assuming the 13 percent income tax estimate duringretirement, wat is their tax-adjusted need from parta?

c. Calculate their projected annual income shortfall intoday's dollars.

d.Determine, indollars, the future value of the shortfall 29 years fromnow, assuming an inflation rate of 2 percent.

e. Assuming a nominal rate of return of 7 percent and 24 years inretirement, calculate their necessary annual investment to reach their retirement goals.

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