Kindly show Q1 & Q2 answers using Finance Formulas (NOT using EXCEL) to demonstrate the steps on how you arrive to the answer. Thank you.

Allan wants to retire in 15 years at age 65. He has determined that he will need a capital sum of $2,354,000 at that time to provide his retirement income. He presently has a retirement plan with a current amount of $350,000 to which he will add $26,000 per year. Allan assumes that his pre retirement and postretirement rates of return will be 8%, and that ination will average 3%. He expects to live to at least age 80 but wants to use age 95 for all calculations. Retirement Planning Expense Method Required Rrgrrftnt Adjusted Rate of Return = 8lo O O - 310 = 59/0 I i O i 50 Future Valueof 55 O 95 Assets _ Current Retirement 1st Year "Mime": Expectancy Age Income L I '3' Shortfall - Use the ima e above for additional information, answer the followin uestions stated below: - Demonstrate how close Allan will come to his goal of a capital sum of $2,354,000. _7 $353}, Calculate the amount of retirement income Allan can expect to receive when he retires at age 65. (Q3) If ination was at a higher value, how will this affect Allan and why? List FOUR (4) possible impacts (assume investment returns cannot be safely improved)