Maria is 55 years old and has $250,000 saved for retirement. She earns $75,000 annually and...

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Maria is 55 years old and has $250,000 saved for retirement. She earns $75,000 annually and expects an average annual raise of 4% (of which is assumed to essentially keep pace w/ inflation). Other assumptions consist of an annual return on investments - Use last digit of your student ID x 01 0.000328967 means 7x 01=0.07 or 7%). If last digit of ID is "0" then use second to last number, if still "0" keeping moving up digit until you find a number> "0" she will retire at age 65 and need 30 years of retirement sayings she will deplete all of her retirement assets • social security will provide for Maria at $14,000 per year in gays dollars an income replacement ratio of 70% Calculate the amount Maria needs at age 65. Calculate the amount Maria needs to save every year. MUST SHOW WORK FOR CREDIT. Maria is 55 years old and has $250,000 saved for retirement. She earns $75,000 annually and expects an average annual raise of 4% (of which is assumed to essentially keep pace w/ inflation). Other assumptions consist of an annual return on investments - Use last digit of your student ID x 01 0.000328967 means 7x 01=0.07 or 7%). If last digit of ID is "0" then use second to last number, if still "0" keeping moving up digit until you find a number> "0" she will retire at age 65 and need 30 years of retirement sayings she will deplete all of her retirement assets • social security will provide for Maria at $14,000 per year in gays dollars an income replacement ratio of 70% Calculate the amount Maria needs at age 65. Calculate the amount Maria needs to save every year. MUST SHOW WORK FOR CREDIT.

Answer rating: 100% (QA)

SOLUTION To calculate the amount Maria needs at age 65 we need to consider her desired income replacement ratio her expected Social Security benefit and the number of years of retirement savings she n... View the full answer