Please complete the following question and show your work for each step. This is due Suday AT NOON.

Your clients, Kliff and Danielle Kingsbury (age 35), want to retire when they are 65 and want to provide 25 years of income during retirement. Based on their current level of living, they would like to provide for $105,000/year (in current dollars) during retirement. They currently have $20,000 in 401Ks. Social Security will provide $10,000/year in current dollars. They have made the following rate estimates: 4.0% inflation before and after retirement, 7.5% return on investments before retirement, and 5.0% return on investments after retirement.

A. What is the lump sum needed at retirement assuming the principal will be liquidated?

B. What is the inflated amount needed when the clients enter retirement?

C. How much do the clients need to save per year in addition to their current savings in order to achieve their retirement goal?

D. What is the lump sum needed at retirement assuming the principal WILL NOT be liquidated?

E. What is the lump sum needed at retirement assuming the principal WILL NOT be liquidated and purchasing power will be maintained?