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Use the following information to answer questions 1 0 - 1 3 :David, age 4 5 , wants to retire at age 6 0 .

Use the following information to answer questions 10-13:David, age 45, wants to retire at age 60. He currently makes $60,000 per year and does not expect any pay increases but expects toreceive a cost-of -living increase equal to inflation. He has an objective to replace 80% of his pre-retirement income. He wants theretirement income to be inflation adjusted. His portfolio is currently valued at $150,000 and earning 10% per year. David expects inflationto average 3% and expects to live until age 90. David wants to ignore Social Security..OonWhat will David's annual need be at age 60?Hint: Use the worksheet Retirement Model with steps.For the current annual spending, put in his current income.When you get to the dollar amount in step 1, multiply that by 80% to get to the correct answer. Type that into cell E17.The "check" number won't calculate correctly at the very end unless you change the rate to.10.Select one:O a. $70,316 b. $79,369O c. $48,000O d.$72,791O e. $74,782

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