Grady Zebrowski, age 25, just graduated from college, accepted his first job with a $49,000 salary, and is already looking forward to retirement in 40 years. He assumes a 2.5 percent inflation rate and plans to live in retirement for 20 years. He does not want to plan on any Social Security benefits. Assume Grady can earn a 7 percent rate of return on his investments prior to retirement and a 6 percent rate of return on his investments post-retirement to answer the following questions using your financial calculator. a. Grady wants to replace 90 percent of his current net income. What is his annual need in today's dollars? b. Using the table , Grady thinks he might have an average tax rate of 13 percent at retirement if he is married. Adjusting for taxes, how much does Grady really need per year, in today's dollars? c. Adjusting for inflation, how much does Grady need per year in future dollars when he begins retirement in 40 years? d. If he needs this amount for 20 years, how much does he need in total for retirement? (Hint: Use the inflation-adjusted rate of return.) e. How much does Grady need to save per month to reach his retirement goal assuming he does not receive any employer match on his retirement savings? TABLE 16.2 The Average Tax Rate Average Tax Rate Retirement Income Couples Filing Jointly Individuals $20,000 7% 10% 30,000 10 14 40,000 12 17 50,000 14 20 60,000 17 22 70,000 19 23 80,000 21 24 90,000 22 25 100,000 23 26 150,000 28 30 Note To estimate your anticipated average tax rate at retirement, you can use the table above based on current tax rates. If you anticipate a change in future tax rates-for example, a flat tax-use that number