Hello I got some questions with the process of the TVM in this questions can someone explain this to me in a step by step so that I can see if I got it right or did the wrong step. Please.

Here is some information:

Harry and Hazel Jones $($both aged $35$ years old$)$ believe they have a solid financial future, but they are concerned about t he actions they need to take to ensure their retirement goals. They have come to you for assistance in determining how they can achieve these goals.

Here are some details about the Joneses:

Hazel Jones $($Age $35)$

Hazel is a self$-$employed business owner in the technology field. She sees a bright future in her work and expects to grow her business over time. This year, she anticipates a net income of $$90,000.$

Harry Jones $($Age $35)$

Harry is an attorney specializing in criminal defense law. He is an employee of Catania & Catania Law Associates. Harry is starting his sixth year of practice. He has been discouraged lately with his growth prospectsat work. He sees only a limited ability to increase his salary in the future and is concerned that his salary

increases are not likely to exceed inflation.

Personal and Financial Objectives

$$ They want to assist Harry's parents in their retirement years, as needed.

$$ They want to be free of mortgage indebtedness by the time Harry is $55$ years old.

$$ They want to design a retirement plan that will provide an income to replace $70\%$ of Harry's preretirement income.

Economic Information

$$ They expect inflation to average $3\%.$

$$ They expect an educational consumer price index $($CPI$)$ of $5\%.$

$$ They expect Harry's salary to increase by $3\%$ annually.

$$ They are in a $24\%$ federal income tax bracket and a $6\%$ state income tax bracket.

Investment Information $\{$Assumptions$)$

The Joneses consider themselves to be moderate risk$-$taking investors.

Expected Return Beta

Aggressive stocks $13\mathrm{.}5\%1\mathrm{.}7$

Growth stocks $10\%1\mathrm{.}2$

S&P $500$ Index $9\%1\mathrm{.}0$

Value stocks $8\mathrm{.}5\%0\mathrm{.}9$

Bonds $($corporate$)6\mathrm{.}5\%0\mathrm{.}6$

Money market $($bank$)1\mathrm{.}75\%0\mathrm{.}2$

Retirement Information

Harry and Hazel would like to retire at or before age $67.$ They both expect to live to age $92.$ They would like tohave a standard of living equal to $70\%$ of Harry's preretirement income. They do not want to rely on Social Security benefits to plan their retirement. During the past year, Harry began participating in a Section $401($k$)$ plan available through his job. Under the plan, his employer matches $$0\mathrm{.}50$ for every dollar contributed, up to $6\%$ of his salary. The maximum contribution by his employer is a total of $3\%.$ Harry is saving $7\%$ of his salary.STATEMENT OF CASH FLOWS

Harry and Hazel Jones

For the Year Ended December $31,2023$

CASH INFLOWS

Salary$-$Harry $$170,000$

Gift from Harry's parents $20,000$

Hazel's self$-$employment income $4,000$

Interest $900$

Total inflows $$194,900$

CASH OUTFLOWS

Section $401($k$)$ plan savings $$11,900$

Mortgage payment $20,700$

Property taxes $($residence$)1,800$

FICA and self$-$employment tax $9,820$

Federal income tax withholding $68,000$

State income tax withholding $6,734$

Utilities $3,980$

Disability insurance premium $900$

Homeowners insurance $2,000$

Auto notes $10,789$

Auto expense and maintenance $1,200$

Auto insurance $2,400$

Housekeeping service $2,400$

Educational loan repayment $6,915$

Clothing and dry cleaning $5,600$

Food $5,750$

Entertainment $3,970$

Miscellaneous $5,998$

Total outflows $$170,856$

Net cash flow $($surplus$)$ $$24,044$

$4$

STATEMENT OF FINANCIAL POSITION

Harry and Hazel Jones January $1,2023$

Assets$1$ Liabilities and Net Worth$2$

Cash$/$cash equivalents Current liabilities

Checking account JT $$2,500$ Credit card balances $ $550$

Money market account$3$ JT $5,000$ Auto loan $($Audi$)25,000$

Auto loan $($Toyota$)18,000$

Total cash$/$cash equivalents $$7,500$ Total current liabilities $$43,550$

Invested assets Long$-$term liabilities

CD JT $$15,000$ Home mortgage $$225,000$

Section $401($k$)$ plan S$110,000$ Student loans $50,500$

Cash value of life insurance S$26,000$

Coin collection S$110,000$ Total long$-$term liabilities $$275,500$

Total invested assets $$41,000$

Personal use assets Net worth $$73,950$

House $($appraised $7/01/21)4$ JT $$275,000$

Auto $($Toyota$)$ JT $22,500$

Auto $($Audi$)$ JT $47,000$

Total personal use assets $$344,500$

Total assets $$393,000$ Total liabilities and net worth $$393,000$

Note to financial statements:

$1$Assets are stated at fair market value.

$2$Liabilities are stated at principal only and are all joint obligations except the student loans that belong to Harry

$1.$ Using the capital utilization

approach, calculate the capital needed at retirement $($age $67)$ for the Joneses. Assume a $9\%$ after$-$tax rate of return. Base the calculation on Harry's salary only, using a $70\%$ wage replacement ratio. $($Use Time Value Money$).$

$2.$ Using the capital preservation approach, calculate the capital needed at retirement for the Joneses to replace $70\%$ of Harry's salary.

$3.$ Using the wealth preservation approach, calculate the capital needed at retirement for the Joneses to replace $70\%$ of Harry's salary. $($Using Time Value Money$)$