Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire in

32

years and anticipate they will need funding for an additional

24

years. They determined that they would have a retirement income of

$56,000

in today's dollars, but they would actually need

$78,009

in retirement income to meet all of their objectives. Calculate the total amount that Peter and Blair must save if they wish to completely fund their income shortfall, assuming a

4

percent inflation rate and a return of

11

percent.

The total amount that Peter and Blair must save if they wish to completely fund their income shortfall, assuming a

4

percent inflation rate and a return of

11

percent is

$