Is the inheritance amount correct? Please provide a solution for all, thank you!

.

.

1. Take the annual retirement amount and project it forward to the age of retirement which will be 65 years old. Break this number down into a monthly earnings. Show your work. (4 points)

.

.

2. Assume that monthly income remains constant in retirement. Using your projected monthly income numbers along with other needed information, calculate the amount of money that must be in the RRSP at the age of retirement in order to fund the future monies involved. Show your work.

.

.

3. Using your required RRSP amounts at the age of retirement, calculate the approximately monthly contribution required to reach that goal. Assume no starting amount in your calculations. Show your work.

.

.

4. Determine the impact of retiring at age 55 on each of the monthly contributions. Discuss the implications of what you see. Show your work.

Information Student 1 Name Sarah Age 19 Retirement income amount $50,000 82 years Life expectancy in years Inheritance Amount (show work) $200,000 - today 200,000 x 1.0125463 = $437,439 - approximately after 63 years Long-term Interest Rate 1.25% 3.0% Long-term Annual Canadian inflation rate Information Student 1 Name Sarah Age 19 Retirement income amount $50,000 82 years Life expectancy in years Inheritance Amount (show work) $200,000 - today 200,000 x 1.0125463 = $437,439 - approximately after 63 years Long-term Interest Rate 1.25% 3.0% Long-term Annual Canadian inflation rate