Rose, age 41, currently earns $80,000. Her wage replacement ratio is determined to be 80%. She expects inflation will average 3% for her entire life expectancy. Rose expects to earn 10% on her investments and retire at age 62, living possibly to age 90. Her Social Security benefit statement indicates her Social Security retirement benefit in today's dollars adjusted for early retirement is $12,000 per year. She will make retirement savings contributions at end of each month. Rose has no savings for retirement as of today.

Requirement:

Calculate Rose's capital needed at retirement at age 62 and her monthly savings needed to support an inflation-adjusted 80% wage replacement ratio using pure annuity model.