FIN 4140 Chapter 2 Homework - Saved to this PC References Mailings Review View Help FOXIT PDF O Tell AaBbCcDc AaBbCcDc AaB 1 Normal 1 No Spac... Headir .EE E- Paragraph Style Solve the following problems Show all of your work. Submit your homework via canvas 1. Your client, Patricia, age 5S, has the following budget Salary SRO,000 Federal/State Income Taxes FICA Contributions to 401(k) Work Related Expenses Living Expenses Entertainment $17.600 56,120 $6,500 $3,500 $42,000 $3,000 in retirement, Patricia plans to live in much the way she lives today. However, she plans to travel, and budgets $10,000 per year that. She also plans on engaging in additional hobbies that would cost $5,000. Assume Federal/State income taxes of 20% per year Put together a retirement budget using the bottom up approach for Patricia Using the result of your work in Question 1 to determine how much Patricia needs to save in order retire, using the following assumptions. Assume that Patricia wishes to retire at age 65 and plans to receive no Social Security income in retirement. Assume a 3% inflation rate and a return on investments of 8% Patricia believes she will live until age 95. She currently has saved $750,000 what does she have to save at the end of each year in order to be able to retire at age 65? (show your work) Your dient, Robert, has started a new job and is concerned about his retirement, Robert is 24 years old. His current salary is $60,000. Assume a 90% Wage Replacement Rate, an inflation rate of 5% and a return on investments of 85%. Robert would like to retire at age 60 and expects to live to age 95. How much does Robert have to save at the end of each year in order to retire at age 60 (show your work) Your new client, Debra, wants to plan for her retirement. Debra is exactly 35 years old. She plans on retiring on her 65 birthday she believes she will live to be age 100. She currently earns $75,000 per year. Assume a Wage Replacement Rate of inflation of 4% and a return on Investments of 9% She anticipates that she will receive $24,000 a year from Social Security in today's dollars. Debra wishes to leave $250,000 inflated in value for the future) to charity upon. her death. Determine how much Debra must save at the end of each month in order to retire at age 65 Lote @ xiwl