Required: 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 0.9%? (Round your percentage answer to 2 decimal places.) Growth in retirement annuity % a-2. Is the benefit greater in the face of inflation? Yes O No A real retirement plan 1 2 3 4 5 9 19 29 39 40 A Retirement Years 25 Age 30 31 35 45 55 65 Total B Income Growth 0.07 Income 50,000 53,500 70,128 137952 271,372 533.829 7,445,673 Rate of Inflation 0.03 Deflator 1.00 1.03 1.16 1.56 2,09 2.81 D Savings Rate 0.15 Saving 7.500 8,025 10.519 20,693 40,706 80,074 1,116,851 E ROR 0.06 Cumulative Savings 7,500 15,975 61,658 308,859 943,477 2.457.518 Real Annuity F TROR 0.0291 Consumption 42,500 44,150 51.419 75.264 110,167 161.257 49.668 1 2 3 4 5 39 A Retirement Years 25 Age 30 31 65 B Income Growth Rate of Inflation 0.07 0.03 Income Deflator SOC00 1 =B4 (1+SBS2) ECA (I+SC$2) -B38*(1+SBS2) -C38 (14$C$2) SUM(B4:39) D E Savings Rate ROR 0.15 0.06 Savings Cumulative Savings -B4 SDS2 -D4 -B5 SDS2 =E41+SES2)+DS -B39"SDS2 -E38'(1+SES2)+D39 SUM(4:39) Real Annuity F TROR =(E2-C2/(1+C2) Consumption =(B4-D4/C4 =(B5-DS/CS (B39-D39)/C39 =PMT(SF$2.SA$2,- SES39/SC$39,0,0) 40 Total