In this task, you will complete the retirement plan that you started in the previous phase using the annuity concepts presented in this phase. · First, you will need to estimate the life expectancy of the retiree. o You use 90 years of age as an estimate. · Now you can subtract the life expectancy of the retiree from 67 (the retirement age), and use the first table below to calculate the required amount at retirement to support the following lifestyles adjusted for inflation (hint: the inflation adjusted amounts will be the payment as you will be calculating the present value of this annuity using a rate of return of 12%). o Basic: Current cost = $45,000o Comfortable: Current cost = $90,000o Luxury: Current cost = $150,000 · Now, using the second table, you can calculate the annual contribution that needs to be made to have each required amount at retirement. o To determine the annual contribution, use the amount you calculated above as the future value, the market rate of return from Phase 1 as interest rate, and number of periods as 67 minus your current age.