Jordan, age 46, currently makes $143,000. She expects that inflation will average 2.75 percent for her entire life expectancy. She expects to earn 8.5 percent on her investments and retire at age 65 and live to age 92. She has sent for and received her Social Security benefit statement, which indicated that her Social Security retirement benefit in todays dollars adjusted for early retirement is $20,000 per year. It is reasonable to subtract the Social Security benefit from todays needs because it is inflation adjusted. Assume a SS/payroll tax rate of 7.65%, a savings rate of 12% during her career, and that her $2100 per month mortgage will be paid off the day before she retires.

A) Calculate the amount Jordan must save monthly, at the end of each month (ordinary annuity), assuming she currently has $25,000 in retirement savings.

B) Calculate the amount of capital Jordan will need at retirement according to the capital preservation method.

C) Calculate the amount of capital Jordan will need at retirement according to the purchasing power preservation model.