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Margaret, a 35-year-old client who earns $45,000 a year, pays 7.65% of her gross salary in Social Security payroll taxes and saves 8% of her

Margaret, a 35-year-old client who earns $45,000 a year, pays 7.65% of her gross salary in Social Security payroll taxes and saves 8% of her gross annual income. She supposes that Margaret wants to maintain exactly her lifestyle prior to her retirement.  calculates Margaret's salary replacement rate using the top-down approach (rounded to the nearest %) and using pre-tax dollars.

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