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Determining Retirement Shortfall Yuan and Alex have 35 years to retirement. They are taking a personal finance course and have calculated their projected retirement income

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Determining Retirement Shortfall Yuan and Alex 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 57,000.00 per year. Use the following tables to answer the questions about future value interest factors. Interest Factors Future Value The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Wu, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Complete the following table by calculating infiation-adjusted annual shortfalf for Yuan and Alex at 5%. Then recalculate the shortfall based on the top rate provided by Dr. Wu. Determining Retirement Shortfall Yuan and Aex have 35 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and investiment needs. Based on their calculations and taking into account their Social Security and pension incornes, they have a projected shortfall of $7,000.00 per year. Use the following tables to answer the guestions about future value interest factors. Interest Factor Future Vakie Interest Factors - Future Value of an Arnuly The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Wu, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Complete the following tabie by calculating inflation-adjusted annual shortfall for Yuan and Aex at 5%5. Then recalculate the shortfalf based on the top rate provided by Dri Wu. The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Wu, who believes that they can expect the average annual infiation rate to be 5 th, possibly 6q6 tops. Complete the following table by calculating inflation-adjusted annual shortfall for Yuan and Alex at 5%. Then recalculate the shortfail based on the top rate provided by Dr. Wu. Funding the shortfall In addition to determining a realistic inflation rate, Yuan and Alex 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 5% as prevlously calculated

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