The Hopeful family is ready to start investing for their retirement. Amara has finished her Master's

Degree in Finance and together, she and Samkelo determine that they need to prepare, even though

they are young, for the future when they will retire. Follow the information below and prepare the

worksheet on the tab "Retirement Income Projection."

Samkelo and Amara now have relatively good income and earn together $$100,\frac{000}{?}$ year. They

believe that in retirement, they will be able to live on $$75,\frac{000}{?}$ year.

The inflation rate is $3\%.$

Samkelo and Amara are now $28$ years old and plan on retiring at age $65.$

The Hopefuls feel that they need to provide for $25$ years of retirement.

Using the above information calculate the following $($using formulas if necessary$)$:

Present desired annual income $($A$)$

Desired retirement annual income $($B$)$

Annual Income adjusted for inflation $($C$)$

Determine the amount of money that will need to have in personal savings $($D$)$

Determine the total fund required $($E$)$

Determine the monthly amount that the Hopefuls will need to save while they are working $($F$)$The Hopeful family is ready to start investing for their retirement. Amara has finished her Master's Degree in Finance and together, she and Samkelo determine that they need to prepare, even though they are young, for the future when they will retire. Follow the information below and prepare the worksheet on the tab "Retirement Income Projection." Samkelo and Amara now have relatively good income and earn together $$100,000/$year$.$ They believe that in retirement, they will be able to live on $$75,000/$year$.$ The inflation rate is $3\%.$ Samkelo and Amara are now $28$ years old and plan on retiring at age $65.$ The Hopefuls feel that they need to provide for $25$ years of retirement.

Using the above information calculate the following $($using formulas if necessary$)$: Present desired annual income $($A$)$

Desired retirement annual income $($B$)$

Annual Income adjusted for inflation $($C$)$

Determine the amount of money that will need to have in personal savings $($D$)$

Determine the total fund required $($E$)$

Determine the monthly amount that the Hopefuls will need to save while they are working $($F$)$

Retirement Income Projection

Present Annual Income $($A$)\_\_\_\_\_\_$

Desired Retirement Annual Income $75\%(75\%$ of A$)($B$)\_\_\_\_\_\_$

Inflation Adjusted Income at Retirement

Years TO Retirement $($number of years of working$)\_\_\_$

Years OF Retirement $($years I am IN retirement$)\_\_\_$

Years of Retirement divided by $2\_\_\_$ For Average Income During Retirement

Total Years of Inflation $0$

Inflation Rate $(\%)\_\_\_$

Total Inflated Retirement

Annual Income $($C$)$ $$\_\_\_\_\_$FV

Sources of Retirement Income

Social Security $(\_\_\_\%$ of C$)30\%\_\_\_$

Company Pension Plan $(\_\_\_\%$ of C$)30\%\_\_\_$

Personal Retirement Plan $(\_\_\_\%$ of C$)40\%\_\_($D$)$

$100\%$ $$\_\_\_$

Investment Fund Required for Personal Retirement Plan

Estimated rate of return on Investment Funds $10\mathrm{.}00\%$

Years of Retirement $0$

Total Fund Required $($E$)$ $$\_\_\_\_\_$PV

Annual Savings Required to Generate the

Investment Fund

Years TO Retirement $($number of years of working$)0$

Estimated Rate of Return $10\mathrm{.}00\%$

Monthly Savings Required $($F$)\_\_\_\_$PMT