Required: a-1. With a 3.0% inflation rate {gpreadsheet 21.2), by how much would your retirement annuity grow if you increase the savings rate by 0.7%? (Round your percentage answer to 2 decimal places.) 'Growth in retirement annuity % a-2. Is the benefit greater in the face of inflation? 0 Yes 0 No A real retirement plan A B C D E F Retirement Years Income Growth Rate of Inflation Savings Rate ROR rROR 2 25 0.07 0.03 0.15 0.06 ).0291 Age Income Deflator Saving Cumulative Savings rConsumption A 30 50,000 1.00 7.500 7,500 42,500 5 31 53,500 1.03 8,025 15,975 44,150 35 70, 128 1.16 10,519 61,658 51,419 19 45 137,952 1.56 20,693 308,859 75,264 29 55 271,372 2.09 40,706 943,477 110,167 39 65 533,829 2.81 80,074 2,457,518 161,257 40 Total 7,445,673 1,116,851 Real Annuity 49,668 A B C D E F Retirement Years Income Growth Rate of Inflation Savings Rate ROR ROR 2 25 ).07 0.03 0.15 0.06 =(E2-C2)/(1+C2) 3 Age Income Deflator Savings Cumulative Savings rConsumption 4 30 50000 =B4*SD$2 =D4 =(B4-D4)/C4 5 31 =B4*(1+$B$2) =C4*(1+$C$2) =B5*SD$2 =E4*(1+$E$2)+D5 =(B5-D5)/C5 39 65 =B38*(1+$B$2) =C38*(1+$C$2) B39*SD$2 =E38*(1+$E$2)+D39 =(B39-D39)/C39 40 Total =SUM(B4:B39) =SUM(D4:D39) Real Annuity =PMT(SF$2,SA$2,- SE$39/SC$39,0,0)