Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire in 26 years and anticipate they will need funding for an additional 14 years. They determined that they would have a retirement income of $77,000.00 in today's dollars but that they would actually need $105,544.00 in retirement income (in today's dollars) to meet all of their objectives. a. What is their annual shortfall at retirement assuming inflation of 2 percent per year? Click on the table icon to view the FVIF table: b. At the time that they retire, how much additional amount must they have accumulated to fund their retirement needs, assuming 2 percent inflation and a rate of return of 7 percent? Click on the table icon to view the PVIFA table: c. Calculate the additional amount that Peter and Blair must save each year for the next 26 years if they wish to completely fund their income shortfall. Click on the table icon to view the a. Their annual shortfall at retirement assuming inflation of 2 percent per year is $ (Round to the nearest cent.) \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Compound Sum of \$1 (FVIF) } \\ \hline n & 2.00% & 3.00% & 4.00% & 5.00% \\ \hline 24 & 1.6084 & 2.0328 & 2.5633 & 3.2251 \\ \hline 25 & 1.6406 & 2.0938 & 2.6658 & 3.3864 \\ \hline 26 & 1.6734 & 2.1566 & 2.7725 & 3.5557 \\ \hline 27 & 1.7069 & 2.2213 & 2.8834 & 3.7335 \\ \hline 28 & 1.7410 & 2.2879 & 2.9987 & 3.9201 \\ \hline 29 & 1.7758 & 2.3566 & 3.1187 & 4.1161 \\ \hline 30 & 1.8114 & 2.4273 & 3.2434 & 4.3219 \\ \hline 31 & 1.8476 & 2.5001 & 3.3731 & 4.5380 \\ \hline 32 & 1.8845 & 2.5751 & 3.5081 & 4.7649 \\ \hline 33 & 1.9222 & 2.6523 & 3.6484 & 5.0032 \\ \hline 34 & 1.9607 & 2.7319 & 3.7943 & 5.2533 \\ \hline 35 & 1.9999 & 2.8139 & 3.9461 & 5.5160 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{10}{|c|}{ Future Value of an Annuity (FVIFA) } \\ \hline n & 5.00% & 6.00% & 7.00% & 8.00% & 9.00% & 10.00% & 11.00% & 12.00% & 13.00% \\ \hline 24 & 44.5020 & 50.8156 & 58.1767 & 66.7648 & 76.7898 & 88.4973 & 102.1742 & 118.1552 & 136.8315 \\ \hline 25 & 47.7271 & 54.8645 & 63.2490 & 73.1059 & 84.7009 & 98.3471 & 114.4133 & 133.3339 & 155.6196 \\ \hline 26 & 51.1135 & 59.1564 & 68.6765 & 79.9544 & 93.3240 & 109.1818 & 127.9988 & 150.3339 & 176.8501 \\ \hline 27 & 54.6691 & 63.7058 & 74.4838 & 87.3508 & 102.7231 & 121.0999 & 143.0786 & 169.3740 & 200.8406 \\ \hline 28 & 58.4026 & 68.5281 & 80.6977 & 95.3388 & 112.9682 & 134.2099 & 159.8173 & 190.6989 & 227.9499 \\ \hline 29 & 62.3227 & 73.6398 & 87.3465 & 103.9659 & 124.1354 & 148.6309 & 178.3972 & 214.5828 & 258.5834 \\ \hline 30 & 66.4388 & 79.0582 & 94.4608 & 113.2832 & 136.3075 & 164.4940 & 199.0209 & 241.3327 & 293.1992 \\ \hline 31 & 70.7608 & 84.8017 & 102.0730 & 123.3459 & 149.5752 & 181.9434 & 221.9132 & 271.2926 & 332.3151 \\ \hline 32 & 75.2988 & 90.8898 & 110.2182 & 134.2135 & 164.0370 & 201.1378 & 247.3236 & 304.8477 & 376.5161 \\ \hline 33 & 80.0638 & 97.3432 & 118.9334 & 145.9506 & 179.8003 & 222.2515 & 275.5292 & 342.4294 & 426.4632 \\ \hline 34 & 85.0670 & 104.1838 & 128.2588 & 158.6267 & 196.9823 & 245.4767 & 306.8374 & 384.5210 & 482.9034 \\ \hline 35 & 90.3203 & 111.4348 & 138.2369 & 172.3168 & 215.7108 & 271.0244 & 341.5896 & 431.6635 & 546.6808 \\ \hline 36 & 95.8363 & 119.1209 & 148.9135 & 187.1021 & 236.1247 & 299.1268 & 380.1644 & 484.4631 & 618.7493 \\ \hline \end{tabular}