Bill? (age 42) and Molly Hickok? (age 39), residents of?Anchorage, Alaska, recently told you that they have becomeincreasingly worried about their retirement.? Bill, a publicschool? teacher, dreams of retiring at 62 so they can travel andvisit family.? Molly, a? self-employed travel? consultant, isunsure that their current retirement plan will achieve that goal.She is concerned that the cost of living in Alaska along with theirlifestyle have them spending at a level they could not maintain.Although they have a nice income of more than $100,000 per? year,they got a late start planning for? retirement, which is now just20 years away. Bill has tried to plan for the future bycontributing to his? 403(b) plan, but he is only investing 6percent of his income when he could be investing 10 percent. Usewhat they told you along with the information below to help themprepare for a prosperous retirement.

?Molly's income	$79,000
?Bill's income	$42,500
Social Security income at retirement	$2,550?/month
Current annual expenditures	$72,500
?Bill's Roth IRA	$20,500
?Bill's 403(b) plan	$47,400
Marginal tax bracket	25 %

3. Given their projected Social Security and investment? income,how much will Bill and Molly need to invest annually to make uptheir income? shortfall? What is the annual additional fundingrequirement to reach their income goal? ?(Round to the nearest?dollar.)