Required: Assume a traditional tax shelter Spreadsheet 21.5, calculate the effect on real consumption during retirement of a 1\% increase in the rate of inflation to a 1% increase in the tax rate. \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline & A & B & C & D & E & F & G & H \\ \hline 1 & Retirement Ycars & Income Growth & Rate of Inflation & Exemption Now & Tax Rate & \begin{tabular}{|l|l|} Savings Rate \\ \end{tabular} & ROR & rROR \\ \hline 2 & 25 & 0.07 & 0.03 & 15000 & 0.25 & 0.15 & 0.06 & 0.0291 \\ \hline 3 & Age & Income & Deflator & Exemption & Taxes & Savings & Cumulative Savings & rConsumption \\ \hline 4 & 30 & \begin{tabular}{r} 50,000 \\ \end{tabular} & 1.00 & 15,000 & 5,016 & 9.922 & 9922 & 35,063 \\ \hline 5 & 31 & 53,500 & 1.03 & 15,450 & 5,465 & 10,724 & 21.242 & 36.224 \\ \hline 9 & 35 & 70.128 & 1.16 & 17,389 & 7.628 & 14,600 & 83.620 & 41.319 \\ \hline 19 & 45 & 137,952 & 1.56 & 23,370 & 16,695 & 31,106 & 438,234 & 57.864 \\ \hline 29 & 55 & 271,372 & 2.09 & 31,407 & 34,952 & 65.205 & 1,393,559 & 81,773 \\ \hline 39 & 65 & 533.829 & 2.81 & 42,208 & 71,307 & 135,087 & 3.762 .956 & 116,365 \\ \hline 40 & Total & & & & 944,536 & 1,773,854 & Real Annuity & 76,052 \\ \hline 41 & RETIREMENT & & & & & & & \\ \hline 42 & Age & Nom Withdraw & Deflator & Exemption & Taxes & & Funds Left & rConsumption \\ \hline 43 & 66 & 220,420 & 290 & 43,474 & 44.236 & & 3,768,313 & 60.789 \\ \hline 47 & 70 & 248,085 & 3.26 & 48,93i & 49,789 & & 3,720,867 & 60,789 \\ \hline 52 & 75 & 287.598 & 3.78 & 56,724 & 57,719 & & 3,455,127 & 60.789 \\ \hline 57 & 80 & 333,405 & 4.38 & 65,759 & 66,912 & & 2,856,737 & 60,789 \\ \hline 62 & 85 & 386,508 & 5.08 & 76,232 & 77,569 & & 1,774,517 & 60.789 \\ \hline 67 & 90 & 448,068 & 5.89 & 88,374 & 89.924 & & 0 & 60,789 \\ \hline 68 & Total & 8,036,350 & & & 1.612,828 & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline & A & B & C & D & E & F & G & H \\ \hline 1 & Retifement Yeams & Income Growth & Rate of Inflation & Exemption Now & Tax Rate & Savings Rate. & ROR & rROR \\ \hline 2 & 25 & 0.07 & 0.03 & 15000 & 0.25 & 0.15 & 0.06 & =(G2C2)(1+C2) \\ \hline 3 & Ape & Income & Deflator & Fixemption & Taxes & Savings: & Cumulative Savings & rConsumption \\ \hline 4 & 30 & 50,900 & 1 & =5D$2C4 & =(H4C4D4)5ES2 & =B4E4H4+C4 & =74 & 35062.5 \\ \hline 5 & 31 & =84(1+SBS2) & =C4(1+SCS2) & 5D52CS & =(HCSD5)SES2 & =BSESHSCS & =G4(1+SGS2)+F5 & 36223.77 \\ \hline 39 & 65 & =B3B(1+58552) & =C38(1+SCS2) & 5D52239 & =(H39C39D39)SES2 & B39E39H399+C39 & =038(1+5GS2)+F39 & 11636498 \\ \hline 40 & Total & & & , & =SUM(EA:E39) & = SUM(F4:F39) & Real Annuity & \begin{tabular}{l} = PMrT(SHS2,S1S2,- \\ SGS39/sCs39, \end{tabular} \\ \hline 41 & RETIREMIANT & & & & & & & \\ \hline 42 & Are & Nom Withdraw & Deflator & Exemption & Taxes & & Funds Left & FComumption \\ \hline 43 & & =5HS40C43 & =cos9(1+scs2) & =5D52C43 & =MAX(0,(843D43)5ES2) & & & =(B43E43)CA3 \\ \hline 44 & 67 & 5H540+C44 & cos(1+5cs2) & =5052C44 & =MAX(0,(B44D44)+5E32) & & \begin{tabular}{l} =0435 \\ (1+5052)1844 \end{tabular} & =(844B44)C44 \\ \hline 67 & 90 & 5H440C67 & =cos(1+ses2) & =5D52+C67 & =MAX(0,(867D67)+5852) & & \begin{tabular}{l} =665 \\ (1+5cos2)867 \end{tabular} & =(B67 EOT) CC7 \\ \hline 68 & Fotal & SUMCHAS:H67) & & & =SUM(1/43:B67) & & & \\ \hline \end{tabular}