Maddison is 47 years old and is concerned about retirement. She wants to know how much she should save on an annual basis at the end of the year, assuming: She earns $80,000 She wants to assume a 80% WRR with $20,000 of Social Security at age 62 Retirement begins in 15 years Retirement will last 33 years Investment returns of 10% Inflation of 4% Hints & Help: Annuity method: Steps 1-4 (reference the retirement needs video & slides, practice problem #2) the mode of your calculator matters the cash flow direction (+/-) of the inputs you make matter answers that are in () means negative cash flow . Round the outcome for step two (2) to the nearest cents. Do not round the IARR in step three (3). Do the math in the calculator and press the I/YR button directly after o Use the BEG button in step (3). Round the outcome for step three (3) to the nearest cents. Round the outcome for step four (4) to the nearest cents. This will be the answer. you will not be given hints on the exam (except where to round) there will not be any bold print on the exam $38,541.23 $79,241.51 ($38,541.23) ($1,224,550.44)

Maddison is 47 years old and is concerned about retirement. She wants to know how much she should save on an annual basis at the end of the year, assuming: She earns $80,000 She wants to assume a 80% WRR with $20,000 of Social Security at age 62 Retirement begins in 15 years Retirement will last 33 years Investment returns of 10% Inflation of 4% Hints \& Help: Annuity method: Steps 1-4 (reference the retirement needs video \& slides, practice problem \#2) - the mode of your calculator matters. - the cash flow direction (+/) of the inputs you make matter - answers that are in () means negative cash flow - Round the outcome for step two (2) to the nearest cents. - Do not round the IARR in step three (3). Do the math in the calculator and press the I/YR button directly after - Use the BEG button in step (3). - Round the outcome for step three (3) to the nearest cents. - Round the outcome for step four (4) to the nearest cents. This will be the answer. - you will not be given hints on the exam (except where to round) - there will not be any bold print on the exam $38,541.23 $79,241.51 ($38,541.23) ($1,224,550.44)