Based on the slide with the steps, compute the annual savings amount using the input data below. You need to show answers to steps 4, 5, and 6. Show your work.

Current age	24
Retirement age	65
Expected life expectancy after retirement	30
Investment return rate	8%
Inflation rate	2%
Current annual expenses	$100,000
The 80% rule?	75%
The annual cost of other goals after retirement	$10,000
Post-retirement tax rate	20%
Current retirement savings	$16,000
Expected monthly social security income	$2,800
Other monthly income after retirement	$400

Output Results Step 1: Set Goals Maintain the current lifestyle after retirement Annual cost of other goals after retirement 80% rule applies $6,000 ow Much to Save? 28 Input Data Current age Retirement age Expected life expectancy after retirement Step 2: Estimate How Much You Will Need Current annual expenses The 80% rule applies Annual costs of other goals after retirement Total after-tax annual expenses at retirement Tax rate after retirement Total pre-tax annual expenses after retirement $90,000 $72,000 $6,000 $78,000 25% $104,000 67 25 Investment return rate Inflation rate 9% 3% Step 3: Estimate Income at Retirement Expected annual social security payments Other annual income after retirement Total annual retirement income $24,000 $3,600 $27,600 Current annual expenses The 80% rule? Annual cost of other goals after retirement Post retirement tax rate $90,000 80% $6,000 25% Step 4: Calculate the Annual Inflation-Adjusted Shortfall Annual shortfall in today's dollars Inflation adjusted annual shortfall in future dollars $76,400 $241,961 Current retirement savings Expected monthly social security income Other monthly income after retirement $45,000 $2,000 $300 Step 5: Calculate How Much You Need to Cover This Shortfall Real rate of return, based on the Fisher Effect Annual shortfall Number of years to cover after retirement Funds needed to support lifetime expense at the beginning of retirement 5.83% $241,961 25 $3,328,317 Annual savings amount to achieve retirement goals? Step 6: Determine How Much You Must Save Annually Between Now and Retirement Target value at retirement (FV) $3,328,317 Current retirement savings (PV) $45,000 Number of years between now and retirement 39 Investment return rate 9% Annual savings amount to achieve retirement goals $6,573