"Steven, age 43, earns $80,000 annually; and his wage replacement ratio has been determined to be 80%. He expects inflation will average 3% for his entire life expectancy. He expects to work until 68, and live until 90. He anticipates an 8% return on his investments. Additionally, Social Security Administration has notified him that his annual retirement benefit, in today s dollars will be $26,000. Using the purchasing power preservation model, calculate how much capital Steven needs, in order to retire at 68. "

Explanation:

Savings Per Month- 80% of $80,000 = $ 64,000.

 Future value for the Yearly saving of $64,000 and Social security of $26,000 for balance years of 25 (68-43)

Future Value= Present value (1+rate of interest)n

Future Value =64,000(1+0.03)∧25= 134,001.7875

Future value= $26,000(1+0.03)∧25- 54,438.22617

Difference= 1,340,001.7875 - 54,438.22617 =  $79,563.56133

present value of a number of cash flows for 22 years after his retirement i.e. 90-68.. The Net rate is 5% i.e. (8%-5%)

Present Value= C   1−(1+r)−n                                                                                                                                                                                                                                                                                                                                                                                             r

                 =$79,563.56   (1−(1+.05)−22                                                                                                                                                                                                                                                                                                                                                                                              0.05

Present value =$1,047,295.35

So he needs capital of $ 1,047,295.35 in order to retire at 68

employees use applications that are uniformed so that they are able to look over them more quickly because the do not want to spend a long time reading through the applications so they get all the infomation that the are looking for on the application they made so the do not have to read about unnessacary infomaton. so to make it simple it them find the person that they want to hirer faster with out wasting time.

i hope this i spelt things wrong i believe but this is why

mark me brainliest.

this website has me so much feel free to keep asking questions

answer; is the sum of all individual demands curves;