Determine the amount of shortfall to be provided for the client's (Fred's) retirement using the replacement ratio method:

- Fred, 35 years old, is single and plans to retire at the

age of 60 years

- Monthly gross salary is S$3,000 and is expected to

Increase by 4% each year

- Has some unit trusts, which he intends to sell at the

age of 60 years and will provide him with approximately

S$100,000 for retirement use

- He requires 70% of his current income during

retirement

Other assumptions:

- Life expectancy for Fred: 86 years

- Interest rate projected: 5% per annum

- Inflation: 2% per annum

Use two decimal places in your working and round the final answer

to the nearest unit. (EXCEPT for Annual real re-investment return,

use four decimal places in your working.)

A. S$1,108,437

B. S$1,144,838

C. S$1,204,893

D. S$1,256,787