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Will you please work this on a short notice please. RETIREMENT PLANNER 1. What is the desired annual retirement income in today's dollars that you

Will you please work this on a short notice please.

image text in transcribed RETIREMENT PLANNER 1. What is the desired annual retirement income in today's dollars that you would like to have when you retire? $___120,000___________________ 2. Subtract $15,000 for today's maximum Social Security payment from the amount shown in number one above, and place the number here. $_____________________ (Note: Social Security is projected to go broke in 2037 & Medicare in 2019.) 3. How many years from now do you intend to retire? ______35________ years 4. Inflation has averaged 4% over the past 10 years. However, it is believed that inflation can now be held to 3% through manipulation of interest rates. Place your estimated inflation rate here for the number of years show in #3 above. _______% 5. Using your Texas Instruments BA II Plus financial calculator, input the following numbers. a. Clear your calculator. b. Input your answer from number 2 above & press PV. c. Input your answer from 3 above and press N. d. Input your answer from 4 above and press I/Y. (Note: I/Y must be set at 1.) e. Press CPT FV. The answer is the required annual income required in the year you retire for you to have the equivalent annual income in today's dollars to line 2 above. $_______________ 6. Divide the answer in #5 above by the average interest rate you think you can achieve over the number of years stated in #3 above. You must subtract inflation. For example, if you think you can average 9% from your investment over the time period in #3 above, and you think inflation can be held to 3%, then 9% - 3% = 6%. Divide by 0.06. $_______________________ The answer is the amount of money you will require in savings in the bank to provide you with the annual income listed in #5 above. NOTE: You cannot compute your annual income without subtracting the inflation rate, or your retirement income will decrease in value by the inflation rate each year. Now that most of you have been totally disillusioned about how much you will need when you retire, lets evaluate how much you will need 10 and 20 years after you retire. Inflation does not stop when you retire; it just keeps chugging along and in some cases gets worse. Please calculate how much you will need 10 and 20 years after you retire and explain your reaction Please provide a full explanation

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