Allison, age 40, earns $81,915 annually; her wage replacement ratio has been determined to be 73%. She expects inflation will average 3% over her entire life expectancy. She expects to work until 67 and live until 95. She anticipates a 7.5% return on her investments. Allison expects to receive $19,685 in Social Security retirement benefits in today's dollars. What are Allison's annual retirement needs in today's dollars? [Round the final answer to the nearest cent]

 

2)

Jordan is 22 years old and spends $113 per week on groceries. If inflation averages 3% per year, how much will Jordan spend on the same groceries when he is 63?

Answer rating: 100% (QA)

To calculate Allisons annual retirement needs in todays dollars we need to determine her future annual income requirement at the time of her retiremen... View the full answer