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university. Jamie Lee and Ross are just a few short years from realizing their goals of retiring at 6 5 and purchasing a home at

university.
Jamie Lee and Ross are just a few short years from realizing their goals of retiring at 65 and purchasing a home at the beach!
They are reviewing their financial situation to ensure they will be ready for retirement. They anticipate being able to live comfortably with 80% of their current expenses. The rate of return on their investments until they retire is 5%. They expect this percentage to drop to 4% after retirement. Use this information, along with Exhibit 1-A, Exhibit 1-B, and the information provided below to determine the annual deposit amount Jamie Lee and Ross will need to make until they retire in order to make up the shortfall between their estimated expenses and income needed during retirement Each answer must have a value for the assignment to be complete. Enter "0" for any unused categories.
Current Expense Amounts (Jamie Lee and Ross Combined)
Fixed expenses: $4,500 per month
Variable expenses $2,400 per month
Estimated Income Amounts (Jamie Lee and Ross Combined)
Social Security: $2,550 per month
Current IRA balance: $83,000
Estimated IRA withdrawal: $250 per month
Other investments: $33,900 per year
Estimated Annual Retirement Living Expenses
Estimated annual living expenses if retiring today
Number of years until retirement
Expected annual rate of return before retirement
Future value (use Exhibit 1-A)
Projected annual retirement living expenses, adjusted for inflation
Estimated Annual Income at Retirement
Social Security income
Company pension, personal retirement account income
Investment and other income
Total retirement income
\table[[,3,000],[,33,900],[,67,500]]
Annual shortfall of income after retirement (A-B)
(C)
Expected years in retirement
Expected annual rate of return before retirement
Expected annual rate of return on invested funds after retirement
\table[[$,30,600],[$,3,000],[$,33,900],[$,67,500],[,],[$,30]]
Future value factor for a series of deposits (use Exhibit 1-B)
\table[[$,66,240],[$,8]]
Annual deposit required to accumulate the amount needed
(D)
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