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Using the new rates of return presented in question 10, please give a best-case and worst-case scenario, with respect to inflation, for the amount of

Using the new rates of return presented in question 10, please give a best-case and worst-case scenario, with respect to inflation, for the amount of money that needs to be saved annually, i.e. what is the monthly savings requirement when inflation is 2.0% and 4% for each scenario?

Question 10 for Reference:

Assume same facts as in question 7 except that Robins risk tolerance was sufficient to tolerate a 90% equity and 10% bond portfolio during the accumulation period (pre-retirement). What is the new expected return for the Robin? After they retire, they will still shift to a 60% stock and 40% bond portfolio. What would the new monthly savings requirements be under the new set of assumptions

Question 7 for Reference:

Robin is planning for her retirement. She is currently 37 years old and plans to retire at age 62 and live until age 97. Robin currently earns $120,000 per year and anticipates needing 80% of her income during retirement. She anticipates Social Security will provide her with $15,000 per year at age 62, leaving her with required savings to provide $81,000 ($120,000 x 0.80 - $15,000) annually during retirement. She is willing to take some investment risk. Her pre-retirement portfolio will be 80% stocks and 20% bonds and their post retirement portfolio will be 60% stocks and 40% bonds. Large company stocks have averaged 9% annually, and intermediate term government bonds have averaged 5% (please calculate the weighted average expected return of your portfolios). She believes inflation will be 3% per year. How much must Robin save at the end of each year if she wants to make her last savings payment at age 62 to meet her retirement goal?

PLEASE SHOW ALL WORK, IF IN EXCEL PLEASE SHOW ALL EQUATIONS THANKS!

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