Pls correct solution with steps. Yuan and Alex have 30 years to retirement. They are taking a personal finance course and have calculated their projected retirement income andinvestment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of$6,000.00 per year.Use the following tables to answer the questions about future value interest factors.Interest Factors-Future Value Interest Factors-Future Value of an AnnuityPeriods 3.00% 5.00% 6.00% 8.00% 9.00%1.8102.6533.2104.6615.6002.0903.386 4.2906.8488.6202.4204.3225.74010.06213.2602.8105.5167.69014.785 20.4103.2607.04010.280 21.724 31.4102025303540The impact of the inflation factorContinuing their worksheet, they consult a friend, economics professor Dr. Wu, who believes that they can expect the average annual inflation rate tobe 5%, possibly 6% tops.Complete the following table by calculating inflation-adjusted annual shortfall for Yuan and Alex at 5%. Then recalculate the shortfall based on thetop rate provided by Dr. Wu.Interest rate Inflation-adjusted annual shortfall(Percent)56=(Dollars)Funding the shortfallIn addition to determining a realistic inflation rate, Yuan and Alex talked to their financial advisor to understand rates of return now and after theyreach retirement. First, their advisor projects that in 30 years, they can realistically earn 5% on their nest egg. Second, he recommends aninvestment vehicle that is earning 6% annually.Interest rate(Percent)5Complete the following table using the inflation-adjusted annual shortfall at 5% as previously calculated.6DescriptionAmount of retirement fund requiredAnnual savings required to fund nest eggfAmount of retirement funds required(Dollars)

Expected shortfall$6,000Interest rate5%Number of years to…

uan and Alex have 30 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and vestment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of 6,000.00 per year. se the following tables to answer the questions about future value interest factors. Interest Factors-Future Value Interest Factors-Future Value of an Annuity

uan and Alex have 30 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and vestment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of 6,000.00 per year. se the following tables to answer the questions about future value interest factors. Interest Factors-Future Value Interest Factors-Future Value of an Annuity

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter17: Retirement And Estate Planning

Section: Chapter Questions

Problem 4FPC

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