Anne-Marie and Yancy calculate their current living expenditures to be $60,000 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 17 percent. Yancy estimated their Social Security income to be about $19,447 and their retirement benefits are approximately $29,311. Use this information to answer the following questions: 2. 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 34 years from now, assuming an inflation rate of 3 percent d. Assuming a nominal rate of return of 8 percent and 29 years in retirement, calculate their necessary annual investment to reach their retirement goals. Click on the table icon to view the FVIF table 1. Click on the table icon to view the PVIFA table . Click on the table icon to view the FVIFA table a. The pre-tax amount, in today's dollars, that Anne-Marie and Yancy will need in retirement assuming 70 percent replacement and an additional $5,000 for the cruise is $ 56,626.51 (Round to the nearest cent.) b. Their projected annual income shortfall in today's dollars is $ 7,868.51(Round to the nearest cent.) c. The future value of the shortfall 34 years from now, assuming an inflation rate of 3 percent is $ to the nearest cent.) Round d. Assuming a nominal rate of return of 8 percent and 29 years in retirement, their necessary annual investment to reach their retirement goals is $ (Round to the nearest cent.) 1: Data Table Compound Sum of $1 (FVIF) 7% 5.0724 5.4274 5.8074 6.2139 6.6488 9% 7.9111 8.6231 9.3992 10.2451 24 3.2251 25 3.3864 4.2919 26 3.5557 27 3.7335 4.8223 28 3.9201 29 4.1161 5.4184 30 4.3219 5.7435 31 4.5380 6.0881 32 4.7649 6.4534 33 5.0032 34 5.2533 7.2510 35 5.5160 6.3412 6.8485 7.3964 7.9881 8.6271 9.3173 10.0627 10.8677 11.7371 12.6760 13.6901 14.7853 9.8497 10.8347 11.9182 13.1100 14.4210 15.8631 17.4494 19.1943 21.1138 23.2252 25.5477 28.1024 4.0489 12.2392 13.5855 15.0799 16.7386 18.5799 20.6237 22.8923 25.4104 28.2056 31.3082 34.7521 38.5749 15.1786 17.0001 19.0401 21.3249 23.8839 26.7499 29.9599 33.5551 37.5817 42.0915 47.1425 52.7996 4.5494 7.6123 8.1451 8.7153 6.8406 9.3253 9.9781 10.6766 12.1722 13.2677 14.4618 15.7633 17.1820 18.7284 20.4140 7.6861
