Your client wants to retire in 20 years at age 68. He will receive a modest pension plus Social Security, but doesn't want to give up his life style. If he wants his retirement fund to pay him $60,000 annually (in current dollars) adjusted annually for inflation, how much will he have to save? Assume that 1] inflation = 3.5%, 2] he can earn 9% before to retirement; 3] he will earn 6% during retirement.

1. What will be your client's approximate retirement income in Year 1?

$112,615

$122,750

$119,390

$102,000

2.Based on an expected income of $100,000, if your client expects to live 25 years, approximately how much will he need on day 1 of retirement? Assume that he will die with zero balance.

$2,219,950

$1,904,400

$1,355,035

$1,859,400

3.If your client needs $2,000,000 to retire, how much will he have to save at the end of each month to achieve his goal?Assume that he has no retirement savings.

$3,105

$3,260

$2,995

$3,700