2 Anne-Marie and Yancy calculate their current living expenditures to be $50,000 a year. During retirement...

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2 Anne-Marie and Yancy calculate their current living expenditures to be $50,000 a year. During retirement they plan to take one cruise a year that will cost $5,000 in today's dollars. Anne-Marie estimated that their average tax rate in retirement would be 11 percent. Yancy estimated their Social Security income to be about $14,856 and their retirement benefits are approximately $24,626. Use this information to answer the following questions: a. How much income, in today's dollars, will Anne-Marie and Yancy need in retirement assuming 70 percent replacement and an additional $5,000 for the cruise? b. Assuming the 11 percent income tax estimate during retirement, wat is their tax-adjusted need from part a? c. Calculate their projected annual income shortfall in today's dollars. d. Determine, in dollars, the future value of the shortfall 25 years from now, assuming an inflation rate of 5 percent. e. Assuming a nominal rate of return of 11 percent and 18 years in retirement, calculate their necessary annual investment to reach their retirement goals. Click on the table icon to view the FVIF table 1. Click on the table icon to view the PVIFA table 2. Click on the table icon to view the FVIFA table . a. The pre-tax amount, in today's dollars, that Anne-Marie and Yancy will need in retirement assuming 70 percent replacement and an additional $5,000 for the cruise is $ b. Assuming the 11 percent income tax estimate during retirement, wat is their tax-adjusted need from part a? The tax-adjusted or gross need is $ (Round to the nearest cent.) c. Their projected annual income shortfall in today's dollars is $ d. The future value of the shortfall 25 years from now, assuming an inflation rate of 5 percent is $ (Round to the nearest cent.) e. Assuming a nominal rate of return of 11 percent and 18 years in retirement, their necessary annual investment to reach their retirement goals is $ 1: Data Table n 24 25 26 27 28 29 30 31 32 5% 3.2251 3.3864 3.5557 3.7335 3.9201 4.1161 4.3219 4.5380 4.7649 6% 4.0489 4.2919 4.5494 4.8223 5.1117 5.4184 5.7435 6.0881 6.4534 7% 5.0724 5.4274 5.8074 6.2139 (Round to the nearest cent.) 6.6488 7.1143 7.6123 8.1451 8.7153 Compound Sum of $1 (FVIF) 8% 9% 6.3412 7.9111 6.8485 8.6231 7.3964 9.3992 7.9881 10.2451 8.6271 9.3173 10.0627 10.8677 11.7371 11.1671 12.1722 13.2677 14.4618 15.7633 10% 9.8497 10.8347 11.9182 13.1100 14.4210 15.8631 17.4494 19.1943 21.1138 (Round to the nearest cent.) (Round to the nearest cent.) 11% 12.2392 13.5855 15.0799 16.7386 18.5799 20.6237 22.8923 25.4104 28.2056 12% 15.1786 17.0001 19.0401 21.3249 23.8839 26.7499 29.9599 33.5551 37.5817 33 34 35 2: Data Table n 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 5.0032 5.2533 5.5160 1% 13.8651 14.7179 15.5623 16.3983 17.2260 18.0456 18.8570 19.6604 20.4558 21.2434 22.0232 22.7952 23.5596 24.3164 25.0658 25.8077 6.8406 7.2510 7.6861 2% 12.8493 13.5777 14.2919 14.9920 15.6785 16.3514 17.0112 17.6580 18.2922 18.9139 19.5235 20.1210 20.7069 21.2813 21.8444 22.3965 3% 11.9379 12.5611 13.1661 13.7535 14.3238 14.8775 15.4150 15.9369 16.4436 16.9355 17.4131 17.8768 18.3270 18.7641 19.1885 19.6004 9.3253 9.9781 10.6766 4% 11.1184 11.6523 12.1657 12.6593 13.1339 13.5903 14.0292 14.4511 14.8568 15.2470 15.6221 15.9828 16.3296 16.6631 16.9837 17.2920 12.6760 13.6901 14.7853 17.1820 18.7284 20.4140 Present Value of an Annuity (PVIFA) 5% 10.3797 6% 9.7122 10.8378 10.1059 10.4773 10.8276 11.1581 11.4699 11.7641 12.0416 12.3034 12.5504 12.7834 13.0032 13.2105 13.4062 13.5907 13.7648 11.2741 11.6896 12.0853 12.4622 12.8212 13.1630 13.4886 13.7986 14.0939 14.3752 14.6430 14.8981 15.1411 15.3725 23.2252 25.5477 28.1024 7% 9.1079 9.4466 9.7632 10.0591 10.3356 10.5940 10.8355 11.0612 11.2722 11.4693 11.6536 11.8258 11.9867 12.1371 12.2777 12.4090 8% 8.5595 8.8514 9.1216 9.3719 9.6036 9.8181 10.0168 10.2007 10.3711 10.5288 10.6748 10.8100 10.9352 11.0511 11.1584 11.2578 31.3082 34.7521 38.5749 9% 8.0607 8.3126 8.5436 8.7556 8.9501 9.1285 9.2922 9.4424 9.5802 9.7066 9.8226 9.9290 10.0266 10.1161 10.1983 10.2737 42.0915 47.1425 52.7996 10% 7.6061 7.8237 8.0216 8.2014 8.3649 8.5136 8.6487 8.7715 8.8832 8.9847 9.0770 9.1609 9.2372 9.3066 9.3696 9.4269 n 24 25 26 27 28 29 30 31 32 33 34 35 6% 50.8156 54.8645 59.1564 63.7058 68.5281 73.6398 79.0582 84.8017 90.8898 97.3432 104.1838 111.4348 7% 58.1767 63.2490 68.6765 74.4838 80.6977 87.3465 94.4608 102.0730 110.2182 118.9334 128.2588 138.2369 8% 66.7648 73.1059 79.9544 87.3508 95.3388 103.9659 113.2832 123.3459 134.2135 145.9506 158.6267 172.3168 Future Value of an Annuity (FVIFA) 9% 76.7898 84.7009 93.3240 102.7231 112.9682 124.1354 136.3075 149.5752 164.0370 179.8003 196.9823 215.7108 10% 88.4973 98.3471 109.1818 121.0999 134.2099 148.6309 164.4940 181.9434 201.1378 222.2515 245.4767 271.0244 11% 102.1742 114.4133 127.9988 143.0786 159.8173 178.3972 199.0209 221.9132 247.3236 275.5292 306.8374 341.5896 12% 118.1552 133.3339 150.3339 169.3740 190.6989 214.5828 241.3327 271.2926 304.8477 342.4294 384.5210 431.6635 13% 136.8315 155.6196 176.8501 200.8406 227.9499 258.5834 293.1992 332.3151 376.5161 426.4632 482.9034 546.6808 2 Anne-Marie and Yancy calculate their current living expenditures to be $50,000 a year. During retirement they plan to take one cruise a year that will cost $5,000 in today's dollars. Anne-Marie estimated that their average tax rate in retirement would be 11 percent. Yancy estimated their Social Security income to be about $14,856 and their retirement benefits are approximately $24,626. Use this information to answer the following questions: a. How much income, in today's dollars, will Anne-Marie and Yancy need in retirement assuming 70 percent replacement and an additional $5,000 for the cruise? b. Assuming the 11 percent income tax estimate during retirement, wat is their tax-adjusted need from part a? c. Calculate their projected annual income shortfall in today's dollars. d. Determine, in dollars, the future value of the shortfall 25 years from now, assuming an inflation rate of 5 percent. e. Assuming a nominal rate of return of 11 percent and 18 years in retirement, calculate their necessary annual investment to reach their retirement goals. Click on the table icon to view the FVIF table 1. Click on the table icon to view the PVIFA table 2. Click on the table icon to view the FVIFA table . a. The pre-tax amount, in today's dollars, that Anne-Marie and Yancy will need in retirement assuming 70 percent replacement and an additional $5,000 for the cruise is $ b. Assuming the 11 percent income tax estimate during retirement, wat is their tax-adjusted need from part a? The tax-adjusted or gross need is $ (Round to the nearest cent.) c. Their projected annual income shortfall in today's dollars is $ d. The future value of the shortfall 25 years from now, assuming an inflation rate of 5 percent is $ (Round to the nearest cent.) e. Assuming a nominal rate of return of 11 percent and 18 years in retirement, their necessary annual investment to reach their retirement goals is $ 1: Data Table n 24 25 26 27 28 29 30 31 32 5% 3.2251 3.3864 3.5557 3.7335 3.9201 4.1161 4.3219 4.5380 4.7649 6% 4.0489 4.2919 4.5494 4.8223 5.1117 5.4184 5.7435 6.0881 6.4534 7% 5.0724 5.4274 5.8074 6.2139 (Round to the nearest cent.) 6.6488 7.1143 7.6123 8.1451 8.7153 Compound Sum of $1 (FVIF) 8% 9% 6.3412 7.9111 6.8485 8.6231 7.3964 9.3992 7.9881 10.2451 8.6271 9.3173 10.0627 10.8677 11.7371 11.1671 12.1722 13.2677 14.4618 15.7633 10% 9.8497 10.8347 11.9182 13.1100 14.4210 15.8631 17.4494 19.1943 21.1138 (Round to the nearest cent.) (Round to the nearest cent.) 11% 12.2392 13.5855 15.0799 16.7386 18.5799 20.6237 22.8923 25.4104 28.2056 12% 15.1786 17.0001 19.0401 21.3249 23.8839 26.7499 29.9599 33.5551 37.5817 33 34 35 2: Data Table n 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 5.0032 5.2533 5.5160 1% 13.8651 14.7179 15.5623 16.3983 17.2260 18.0456 18.8570 19.6604 20.4558 21.2434 22.0232 22.7952 23.5596 24.3164 25.0658 25.8077 6.8406 7.2510 7.6861 2% 12.8493 13.5777 14.2919 14.9920 15.6785 16.3514 17.0112 17.6580 18.2922 18.9139 19.5235 20.1210 20.7069 21.2813 21.8444 22.3965 3% 11.9379 12.5611 13.1661 13.7535 14.3238 14.8775 15.4150 15.9369 16.4436 16.9355 17.4131 17.8768 18.3270 18.7641 19.1885 19.6004 9.3253 9.9781 10.6766 4% 11.1184 11.6523 12.1657 12.6593 13.1339 13.5903 14.0292 14.4511 14.8568 15.2470 15.6221 15.9828 16.3296 16.6631 16.9837 17.2920 12.6760 13.6901 14.7853 17.1820 18.7284 20.4140 Present Value of an Annuity (PVIFA) 5% 10.3797 6% 9.7122 10.8378 10.1059 10.4773 10.8276 11.1581 11.4699 11.7641 12.0416 12.3034 12.5504 12.7834 13.0032 13.2105 13.4062 13.5907 13.7648 11.2741 11.6896 12.0853 12.4622 12.8212 13.1630 13.4886 13.7986 14.0939 14.3752 14.6430 14.8981 15.1411 15.3725 23.2252 25.5477 28.1024 7% 9.1079 9.4466 9.7632 10.0591 10.3356 10.5940 10.8355 11.0612 11.2722 11.4693 11.6536 11.8258 11.9867 12.1371 12.2777 12.4090 8% 8.5595 8.8514 9.1216 9.3719 9.6036 9.8181 10.0168 10.2007 10.3711 10.5288 10.6748 10.8100 10.9352 11.0511 11.1584 11.2578 31.3082 34.7521 38.5749 9% 8.0607 8.3126 8.5436 8.7556 8.9501 9.1285 9.2922 9.4424 9.5802 9.7066 9.8226 9.9290 10.0266 10.1161 10.1983 10.2737 42.0915 47.1425 52.7996 10% 7.6061 7.8237 8.0216 8.2014 8.3649 8.5136 8.6487 8.7715 8.8832 8.9847 9.0770 9.1609 9.2372 9.3066 9.3696 9.4269 n 24 25 26 27 28 29 30 31 32 33 34 35 6% 50.8156 54.8645 59.1564 63.7058 68.5281 73.6398 79.0582 84.8017 90.8898 97.3432 104.1838 111.4348 7% 58.1767 63.2490 68.6765 74.4838 80.6977 87.3465 94.4608 102.0730 110.2182 118.9334 128.2588 138.2369 8% 66.7648 73.1059 79.9544 87.3508 95.3388 103.9659 113.2832 123.3459 134.2135 145.9506 158.6267 172.3168 Future Value of an Annuity (FVIFA) 9% 76.7898 84.7009 93.3240 102.7231 112.9682 124.1354 136.3075 149.5752 164.0370 179.8003 196.9823 215.7108 10% 88.4973 98.3471 109.1818 121.0999 134.2099 148.6309 164.4940 181.9434 201.1378 222.2515 245.4767 271.0244 11% 102.1742 114.4133 127.9988 143.0786 159.8173 178.3972 199.0209 221.9132 247.3236 275.5292 306.8374 341.5896 12% 118.1552 133.3339 150.3339 169.3740 190.6989 214.5828 241.3327 271.2926 304.8477 342.4294 384.5210 431.6635 13% 136.8315 155.6196 176.8501 200.8406 227.9499 258.5834 293.1992 332.3151 376.5161 426.4632 482.9034 546.6808

Answer rating: 100% (QA)

To calculate the values requested lets go step by step a The pretax amount in todays dollars that AnneMarie and Yancy will need in retirement assuming ... View the full answer