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.What is the total amount of funds needed when entering retirement to provide their needed retirement income (in today's dollars)? [10 points]

2.What is the total amount of funds needed upon entering retirement (in tomorrow's dollars)? [10 points]