Li and Courtney know that you are completing a personal finance course and that you understand how to complete a Projecting Retirement Incom and Investment Needs worksheet. They have gathered the following information for you: Use the following tables to identify the necessary future value interest factors. Interest Factors-Future Value Complete the following worksheet. Note: 1) Every field must have a value (if your answer is zero, type "O"); 2) some values are reated everything else to two decimal places (or the nearest whole number if it does not let you enter decimals). E. Social Security, annual income F. Company/employer pension plans, annual amounts G. Other sources, annual amounts H. Total annual income (E+F+G) I. Additional required income, or annual shortfall (DH) III. Inflation Factor J. Expected average annual inflation rate over the period to retirement K. Inflation factor (a) Years to retirement (A) (b) Average annual inflation rate (J) L. Size of inflation-adjusted annual shortfall IV. Funding the Shortfall M. Anticipated return on assets held after retirement N. Amount of retirement fund required (your nest egg) O. Expected rate of return on investments prior to retirement P. Compound interest factor (a) Years to retirement (A) (b) Expected rate of return on investments prior to retirement (O) % Q. Annual savings required to fund retirement nest egg (NP) Li and Courtney know that you are completing a personal finance course and that you understand how to complete a Projecting Retirement Incom and Investment Needs worksheet. They have gathered the following information for you: Use the following tables to identify the necessary future value interest factors. Interest Factors-Future Value Complete the following worksheet. Note: 1) Every field must have a value (if your answer is zero, type "O"); 2) some values are reated everything else to two decimal places (or the nearest whole number if it does not let you enter decimals). E. Social Security, annual income F. Company/employer pension plans, annual amounts G. Other sources, annual amounts H. Total annual income (E+F+G) I. Additional required income, or annual shortfall (DH) III. Inflation Factor J. Expected average annual inflation rate over the period to retirement K. Inflation factor (a) Years to retirement (A) (b) Average annual inflation rate (J) L. Size of inflation-adjusted annual shortfall IV. Funding the Shortfall M. Anticipated return on assets held after retirement N. Amount of retirement fund required (your nest egg) O. Expected rate of return on investments prior to retirement P. Compound interest factor (a) Years to retirement (A) (b) Expected rate of return on investments prior to retirement (O) % Q. Annual savings required to fund retirement nest egg (NP)
