Anne-Marie and Yancy calculate their current living expenditures to be

$80,000

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

16

percent. Yancy estimated their Social Security income to be about

$26,011

and their retirement benefits are approximately

$39,910.

Use this information to answer the following questions:a. How much income, in today's dollars, will Anne-Marie and Yancy need in retirement assuming 70 percent replacement and an additional

$5,000

for the cruise?

b. Calculate their projected annual income shortfall in today's dollars.

c. Determine, in dollars, the future value of the shortfall

33 years from now, assuming an inflation rate of

3

percent.

d. Assuming a nominal rate of return of

9

percent and

28

years in retirement, calculate their necessary annual investment to reach their retirement goals.

I need help with D

Homework: 6-3 MyFinanceLab: Assignment: Module Six Homework Save Score: 0 of 1 pt 2 of 7 (1 complete) HW Score: 5.71%, 0.4 of 7 pts Problem 15-4 (similar to) Question Help * Anne-Marie and Yancy calculate their current living expenditures to be $80,000 a year. During retirement they plan to take one cruise a year that will cost $5,000 in today's dollars. Anne-Marie estimated that their average tax rate in retirement would be 16 percent. Yancy estimated their Social Security income to be about $26,011 and their retirement benefits are approximately $39,910. Use this information to answer the following questions: a. How much income, in today's dollars, will Anne-Marie and Yancy need in retirement assuming 70 percent replacement and an additional S5,000 for the cruise? b. Caculate their projected annual income shortfall in today's dollars c. Deterrnine, in dollars, the future value of the shortfall 33 years from now, assuming an inflation rate of 3 percent. d. ssuming a nominal ate o return o 9 percent and 28 ears n etirement, a late their nec ssary an al investment to each their et rement go ci c on the able con to view e table on the le cont viethem A ble . click on the table icon to view the FVIFA table a. The pre-tax amount, in today's dollars, that Anne-Marie and Yancy wl need in retirement assuming 7D percent replacement and an additional $5,000 for the cruise is $ 72619.05 (Round to the nearest cent.) b. Their projected annual income shorttal in today's dollars is S 6698.05. (Round to the nearest cent.) c. The future value of the shortfall 33 years from now, assuming an inflation rate of 3 percent is $ 17765.47. (Round to the nearest cent.) d. Assuming a nominal rate of return of 9 percent and 28 years in retirement, their necessary annual investment to reach their retirement goals is S(Round to the nearest cent.)