mapter 21 Taxes, Inflation, and Investment Strategy 0-1. With a 3.0% Inflation rate (Spreadsheet 21.2), by how much would your retirement annuity grow if you increase the savings rate by 1.0%? (Round your answer to 2 decimal places.) Growth in retirement annuity HOR ment Years Income Growth Rate of Inflation Savings Rate 07 1.03 15 Age Income Deflator Saving Cumulative Savings 50,000 7,500 7,500 53,500 8,025 15,975 70,128 10,5191 61,658 137,952 20,693 308,859 271,372 40.706 943,477 533,829 80,074 2.457,518 7,445,673 1,116,851 Real Annuity TROR 0291 Consumption 42,500 44,150 51,419 75,264 110.167 161,257 49,668 NN- Retirement Years .06 Age E Rate of Inflation Savings Rate ROR TROR .03 1.15 (E2-C2Y1+C2) Deflator Savings Cumulative Savings rconsumption -B4'$D$2 -04 (B4-D4VC4 -C4'1+$C$2)-B5 SD$2 -E4' (1+$E$2)+D5 -B5-D5yC5 -C38 (1+$C$2 1-B39"$D$2 -E381+$E$2)+D39 -(B39-D39/C39 =SUM(D4:039) Real Annuity PMT(SFS2, SAS2, SES39/SC$39,0,0) Income Growth 07 Income 50000 -B41+$B$2) --B38*(1+$B$2) =SUM(B4:B39) 30 31 65 Total 0-1. With a 30% Inflation rate (Spreadsheet 212), by how much would your retirement annuity grow if you increase the savings rate by 1.0%? (Round your answer to 2 decimal places.) Growth in retirement annuity 1% 1.15 Age Retirement Years Income Growth Rate of Inflation Savings Rate .07 .03 Income Deflator Saving 50,000 1.00 7,500 53,500 1.03 8,025 70,128 1.16 10,519 137.952 1.561 20,693 271,372 40,706 533,829 2.81 80,074 Total 7,445,6731 1,116,851 ES ROR 06 Cumulative Savings 7,500 15,975 61,658 308,859 943,477 2,457,518 Real Annuity Real Annuity TROR .0291 Consumption 42,500 44,150 51,419 75,264 110,167 161,257 49,668 2.09 Retirement Years 25 Age 30 Income Growth .07 Income 50000 -B41+$B$2) -B38" (1+$B$2 =SUM(B4:B39) SEDEF Rate of Inflation Savings Rate ROR TROR .03 .15 .06 E2-C21-C2) Deflator Savings Cumulative Savings Consumption 1 -B4"$D$2 04 (B4-D4/C4 -C4Y1$C$2 -B5 SD$2 -E4 (1+$E$2)+D5 B5-D5yC5 -C381+$C$2-B39"$D$2 -E38" 1+$E$2)+D39 -(B39-D39)/C39 SUM(D4D39) Real Annuity EPMT(SFS2,SAS2. SE$39/SC$39,0,0) 65 Total