Using the capital utilization approach, calculate the capital needed at retirement age for the Joneses. Assume a aftertax rate of return. Base the calculation on Harry\'s salary only, using a wage replacement ratio.

Other facts:

Harry is retirement in years at age

Harry\'s income is $

of that income would be $todays dollar

Life expectancy is age years post retirement

aftertax rate of return

Inflation will average annually

Educational consumer price index CPI of

Harry\'s salary is expected to increase annually

They are in a federal income tax bracket and state income tax bracket

They do not want to include social security in this calculation

I got it started, but I am not sure if this is right:

PV $

IYR

N