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 $5,500.00 per year.

Use the following tables to answer the questions about future value interest factors.

Interest FactorsFuture Value

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	3.260	7.040	10.280	21.724	31.410

Interest FactorsFuture Value of an Annuity

Periods	3.00%	5.00%	6.00%	8.00%	9.00%
20	26.870	33.066	36.780	45.762	51.160
25	36.460	47.726	54.860	73.105	84.700
30	47.570	66.438	79.060	113.282	136.300
35	60.460	90.318	111.430	172.314	215.700
40	75.400	120.797	154.760	259.052	337.870

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. 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