Determining Retirement Shortfall David and Anisa have 35 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and Investment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of $5,750.00 per year. Use the following tables to answer the questions about future value interest factors. Interest Factors Future Value - Interest Factors-Future Value of an Annuity Periods 3.00% 5.00% 8.00% 9.00% 6.00% 4.661 3.210 2.653 20 1.810 5.600 25 2.090 3.386 4.290 6.848 8.620. 30 2.420 4.322 5.740 10.062 13.260 35 2.810 5.516 7.690 14.785 20.410 21 724 10 280 3.760 7.040 40 31 410 the inflation factor 2:54 PM wwwwww FOLUIG YOU FOLLO Interest Factors -Future Value Interest Factors Future Value of an Annuity Periods 3.00% 5.00% 6.00% 8.00% 9.00% 20 26.870 33.066 36.780 45.762 51.160 25 36.460 47.726 54.860 73.105 84.700 47.570 66.438 79.060 113.282 136.300 60.460 90.318 111.430 172.314 215.700 75 400 120.707 154 760 750 757 317.876 30 35 40 D The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Rosenberg, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Complete the following table by calculating inflation-adjusted annual shortfall for David and Anisa at 5%. Then recalculate the shortfall based on the top rate provided by Dr. Rosenberg. Interest rate Inflation-adjusted annual shortfall (Percent) (Dollars) 5 6 Funding the shortfall In addition to determining a realistic inflation rate, David and Anisa talked to their financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 35 years, they can realistically earn 5% on their nest egg. Second, he recommends an investment vehicle that is earning 6% annually. 6 Funding the shortfall In addition to determining a realistic inflation rate, David and Anisa talked to their financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 35 years, they can realistically earn 5% on their nest egg. Second, he recommends an Investment vehicle that is earning 6% annually. Complete the following table using the inflation-adjusted annual shortfall at Si as previously calculated. Interest rate (Percent) Amount of retirement funds required (Dollars) Description 5 Amount of retirement fund required. Annual savings required to fund nest egg. Save & Continue Continue without saving Grade It Now TEE F Determining Retirement Shortfall David and Anisa have 35 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and Investment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of $5,750.00 per year. Use the following tables to answer the questions about future value interest factors. Interest Factors Future Value - Interest Factors-Future Value of an Annuity Periods 3.00% 5.00% 8.00% 9.00% 6.00% 4.661 3.210 2.653 20 1.810 5.600 25 2.090 3.386 4.290 6.848 8.620. 30 2.420 4.322 5.740 10.062 13.260 35 2.810 5.516 7.690 14.785 20.410 21 724 10 280 3.760 7.040 40 31 410 the inflation factor 2:54 PM wwwwww FOLUIG YOU FOLLO Interest Factors -Future Value Interest Factors Future Value of an Annuity Periods 3.00% 5.00% 6.00% 8.00% 9.00% 20 26.870 33.066 36.780 45.762 51.160 25 36.460 47.726 54.860 73.105 84.700 47.570 66.438 79.060 113.282 136.300 60.460 90.318 111.430 172.314 215.700 75 400 120.707 154 760 750 757 317.876 30 35 40 D The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Rosenberg, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Complete the following table by calculating inflation-adjusted annual shortfall for David and Anisa at 5%. Then recalculate the shortfall based on the top rate provided by Dr. Rosenberg. Interest rate Inflation-adjusted annual shortfall (Percent) (Dollars) 5 6 Funding the shortfall In addition to determining a realistic inflation rate, David and Anisa talked to their financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 35 years, they can realistically earn 5% on their nest egg. Second, he recommends an investment vehicle that is earning 6% annually. 6 Funding the shortfall In addition to determining a realistic inflation rate, David and Anisa talked to their financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 35 years, they can realistically earn 5% on their nest egg. Second, he recommends an Investment vehicle that is earning 6% annually. Complete the following table using the inflation-adjusted annual shortfall at Si as previously calculated. Interest rate (Percent) Amount of retirement funds required (Dollars) Description 5 Amount of retirement fund required. Annual savings required to fund nest egg. Save & Continue Continue without saving Grade It Now TEE F