RETIREMENT DATA FOR PART 1 - QUESTIONS 1-7

Income Needed During Retirement

$75,000

Number of Years in Retirement

25 years

Number of Year Before Retirement

30 years

Rate of Return During Retirement

5%

Rate of Return Before Retirement

7%

Inflation Before and During Retirement

3%

1.

a.How much should your client save per year in order to meet their required funds for retirement? Calculate for both an annuity and annuity due.

b.How much should your client save per month in order to meet their required funds for retirement? Calculate for both an annuity and annuity due.