Maria, age 60, has been a member of her companys defined contribution pension plan for 30 years, and intends to take early retirement. Her pension has accumulated $850,000, which she will use to purchase a life annuity with monthly payments that start at the end of her first month of retirement. Assume an annual nominal interest rate of 4.50% compounded monthly, and a life expectancy of 35 years. She would like to receive a monthly income of $4,250 from her pension. Are her savings adequate? Calculate the excess or shortfall of the assets in the pension plan.

1. Excess of $51,400.28
2. Shortfall of $51,400.28
3. Shortfall of $48,032.65
4. Excess of $48,032.65