Jane age $41$ currently earns $$80,000$ per year. Her wage replacement ratio $($WRR$)$ is determined to be $80\%.$

She expects inflation will average $3\%$ for her entire life expectancy. Jane expects to earn $10\%$ on

her investments and retire at age $62,$ living possibly to age $90.$ Her Social Security benefit statement

indicates her Social Security retirement benefit in today's dollar adjusted for early retirement is $$12,00$

per year. She will make retirement savings contribution at the end of each month.

Use Excel to calculate Jane's rerirement planning options under the $($a$)$ the Pure Annuity Model, $($b$)$ the Capital Preservation Model

and $($c$)$ the Purchasing Power Preservation Model

$($a $)$ Capital needed by Jane at retirement at age $62$ and her monthly savings needed to support an inflation$-$adjusted $80\%$ WRR$.$

Step $1$

Calculate the annual income needed

$($$$80,000\mathrm{.}80)=$