a-1. With a 3.0% inflation rate (Spreadsheet 21.2), by how much would your retirement annuity grow if you increase the savings rate by 0.7%? (Round your percentage answer to 2 decimal places.) (answer as a percent)

SPREADSHEET 21.2

A real retirement plan

	A	B	C	D	E	F
1	Retirement Years	Income Growth	Rate of Inflation	Savings Rate	ROR	rROR
2	25	0.07	0.03	0.15	0.06	0.0291
3	Age	Income	Deflator	Saving	Cumulative Savings	rConsumption
4	30	50,000	1.00	7,500	7,500	42,500
5	31	53,500	1.03	8,025	15,975	44,150
9	35	70,128	1.16	10,519	61,658	51,419
19	45	137,952	1.56	20,693	308,859	75,264
29	55	271,372	2.09	40,706	943,477	110,167
39	65	533,829	2.81	80,074	2,457,518	161,257
40	Total	7,445,673		1,116,851	Real Annuity	49,668

	A	B	C	D	E	F
1	Retirement Years	Income Growth	Rate of Inflation	Savings Rate	ROR	rROR
2	25	0.07	0.03	0.15	0.06	=(E2C2)/(1+C2)
3	Age	Income	Deflator	Savings	Cumulative Savings	rConsumption
4	30	50000	1	=B4*$D$2	=D4	=(B4D4)/C4
5	31	=B4*(1+$B$2)	=C4*(1+$C$2)	=B5*$D$2	=E4*(1+$E$2)+D5	=(B5D5)/C5
39	65	=B38*(1+$B$2)	=C38*(1+$C$2)	=B39*$D$2	=E38*(1+$E$2)+D39	=(B39D39)/C39
40	Total	=SUM(B4:B39)		=SUM(D4:D39)	Real Annuity	=PMT($F$2,$A$2,$E$39/$C$39,0,0)