Peter and Linda retirement income equal to S eynolds (respectively, ages 57 and 56) have determined that they will need 63,000 annually, based on current income. They plan to retire in 8 years and wish to assume an annual after-tax investment rate of return of 6% and an annual inflation rate of 2%. They also wish to assume thattheir retirement period will last for 30 years, at which time all retirement principal and income will be utilized. 1.What will be the Reynolds' first year's income at their retirement date using the capital utilization method of computation? a) $63,000 b) $73,815 c) $79,807 d) $99,954 2. What is the amount of lump sum capital necessary to support their retirement income need? a) $1,017,007 b) $1.089,492 c) $1,288,655 d) $1,339,186 Ifthe Reynolds decide to count thei lars per year, what would be the amount of lump sum capital necessary to support their ir projected Social Security benefits of $14,251 in today's rement income need? S 869,082 )884,426 $1,039,859 $1,080,637