Capital need analysis is the process of calculating the amount of investment capital needed at retirement to maintain the pre-retirement lifestyle and mitigate the impact of inflation during the retirement years. You as a financial planner, attempt to calculate your client, Abu amount of capital needed at this retirement using this analysis. Below is the information of your client: -He is 30 age years old

-Asumme Wage Replacement Ratio(WRR) 80% -Currently make RM60,000 per year -Inflation expected to be 4% for his entire life expectancy -Expected to earn 10% on his investments and retire at age 60 and possibly living to age 80 -Social Security retirement benefit expected to be RM20,000 per year. Your client Abu prefer to calculate the capital needed at his retirement using Annuity method and Purchasing Power Preservation.

Can please show the calculation and explanation to me?