Ryan and Rebecca have 35 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and investment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of $7,500.00 per year. Use the following tables to answer the questions about future value interest factors. Interest FactorsFuture Value Interest Factors-Future Value of an Annuity Periods 3.00% 5.00% 6.00% 8.00% 9.00% 20 1.810 2.653 3.210 4.661 5.600 25 2.090 3.386 4.290 6.848 8.620 30 2.420 4.322 5.740 10.062 13.260 35 2.810 5.516 7.690 14.785 20.410 40 3260 7040 10 280 21 724 31 410 The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Garcia, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Complete the following table by calculating inflation-adjusted annual shortfall for Ryan and Rebecca at 5%. Then recalculate the shortfall based on the top rate provided by Dr. Garcia. Interest rate (Percent) Inflation-adjusted annual shortfall (Dollars) 5 6 Funding the shortfall In addition to determining a realistic inflation rate, Ryan and Rebecca talked to their financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 35 years, they can realistically earn 5% on their nest egg. Second, he recommends an investment vehicle that is earning 6% annually. Complete the following table using the inflation-adjusted annual shortfall at 5% as previously calculated. Interest rate (Percent) Amount of retirement funds required (Dollars) Description Amount of retirement fund required 5 6 Annual savings required to fund nest egg