Grady Zebrowski, age 25. just graduated from college, accepted his first job with a $47,000 salary, and is already looking forward to retirement in 40 years. He assumes a 3.3 percent inflation rate and plans to live in retirement for 20 years. He does not want to plan on any Social Security benefits. Assume Grady can eam a 7 percent rate of retum on his investments prior to retirement and a 6 percent rate of return on his investments post-retirement to answer the following questions using your financial calculator a. Grady wants to replace 90 percent of his current net income. What is his annual need in today's dollars? b. Using the table B. Grady thinks he might have an average tax rate of 13 percent at retirement if he is married. Adjusting for taxes, how much does Grady really need per year, in today's dollars? C. Adjusting for inflation, how much does Grady need per year in future dollars when he begins retirement in 40 years? d. If he needs this amount for 20 years, how much does he need in total for retirement? (Hint: Use the inflation-adjusted rate of return.) c. How much does Grady need to save per month to reach his retirement goal assuming he does not receive any eriployer match on his retirement savings? Click on the table icon to view the FVIF table B. Click on the table icon to view the PVIFA table B. Click on the table icon to view the FVIFA table a. Grady's annual need in today's dollars is $. (Round to the nearest dollar.) i Data Table i Data Table 0 Data Table 15. 1563 15.0160 14.8775 14.7409 14.6061 14.4731 2.40% 2.50% 2.60% 2.70% 2.80% 2.90% 3.00% 3.10% % 3.20% 3.30% 3.40% 3.50% 3.60% 1.6069 1.6386 1.6709 1.7038 1.7372 1.7714 1.8061 1.8415 1.8776 1.9143 1.9517 1.9898 2.0286 2.5622 2.6851 2.7919 2.9028 3.0180 3.1377 3.2620 3.3911 3.5252 3.6645 3.8091 3.9593 4.1152 2.80% 2.90% 3.00% 3.10% 3.20% 3.30% 3.40% 3.50% 3.60% 3.70% 3.80% 3.90% 4.00% 4.10% 4.20% 23.8807 23.4930 23.1148 22.7456 22.3853 22.0336 21.6903 21.3551 21.0277 20.7080 20.3958 20.0908 19.7928 19.5016 19.2171 Monthly Installment Loan Tables ($1,000 loan ith interest payments compounded monthly) n = 240 n = 480 6 462.0409 1991.4907 7 520.9267 2624.8134 8 589.0204 3491.0078 9 667.8869 4681.3203 10 759.3688 6324.0796 11 865.6380 8600. 1272 12 989.2554 11764.7725 14.3419 14.2124 14.0847 13.9586 13.8342 13.7115 13.5903 13.4708 13.3528 ? Print Done Grady Zebrowski, age 25. just graduated from college, accepted his first job with a $47,000 salary, and is already looking forward to retirement in 40 years. He assumes a 3.3 percent inflation rate and plans to live in retirement for 20 years. He does not want to plan on any Social Security benefits. Assume Grady can eam a 7 percent rate of retum on his investments prior to retirement and a 6 percent rate of return on his investments post-retirement to answer the following questions using your financial calculator a. Grady wants to replace 90 percent of his current net income. What is his annual need in today's dollars? b. Using the table B. Grady thinks he might have an average tax rate of 13 percent at retirement if he is married. Adjusting for taxes, how much does Grady really need per year, in today's dollars? C. Adjusting for inflation, how much does Grady need per year in future dollars when he begins retirement in 40 years? d. If he needs this amount for 20 years, how much does he need in total for retirement? (Hint: Use the inflation-adjusted rate of return.) c. How much does Grady need to save per month to reach his retirement goal assuming he does not receive any eriployer match on his retirement savings? Click on the table icon to view the FVIF table B. Click on the table icon to view the PVIFA table B. Click on the table icon to view the FVIFA table a. Grady's annual need in today's dollars is $. (Round to the nearest dollar.) i Data Table i Data Table 0 Data Table 15. 1563 15.0160 14.8775 14.7409 14.6061 14.4731 2.40% 2.50% 2.60% 2.70% 2.80% 2.90% 3.00% 3.10% % 3.20% 3.30% 3.40% 3.50% 3.60% 1.6069 1.6386 1.6709 1.7038 1.7372 1.7714 1.8061 1.8415 1.8776 1.9143 1.9517 1.9898 2.0286 2.5622 2.6851 2.7919 2.9028 3.0180 3.1377 3.2620 3.3911 3.5252 3.6645 3.8091 3.9593 4.1152 2.80% 2.90% 3.00% 3.10% 3.20% 3.30% 3.40% 3.50% 3.60% 3.70% 3.80% 3.90% 4.00% 4.10% 4.20% 23.8807 23.4930 23.1148 22.7456 22.3853 22.0336 21.6903 21.3551 21.0277 20.7080 20.3958 20.0908 19.7928 19.5016 19.2171 Monthly Installment Loan Tables ($1,000 loan ith interest payments compounded monthly) n = 240 n = 480 6 462.0409 1991.4907 7 520.9267 2624.8134 8 589.0204 3491.0078 9 667.8869 4681.3203 10 759.3688 6324.0796 11 865.6380 8600. 1272 12 989.2554 11764.7725 14.3419 14.2124 14.0847 13.9586 13.8342 13.7115 13.5903 13.4708 13.3528 ? Print Done