Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25 years after he retires - that is, until age 85. He wants his first retirement payment to have the same purchasing power at the time he retires as $55,000 has today. He wants all his subsequent retirement payments to be equal to his first retirement payment. (Do not let the retirement payments grow with inflation: Your father realizes that if inflation occurs the real value of his retirement income will decline year by year after he retires). His retirement income will begin the day he retires, 10 years from today, and he will then receive 24 additional annual payments. Inflation is expected to be 5% per year from today forward. He currently has $125,000 saved and expects to earn a return on his savings of 9% per year with annual compounding.

The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.

How much must he save during each of the next 10 years (with equal deposits being made at the end of each year, beginning a year from today) to meet his retirement goal? (Note: Neither the amount he saves nor the amount he withdraws upon retirement is a growing annuity.) Do not round intermediate calculations. Round your answer to the nearest dollar.

\begin{tabular}{|c|c|c|c|c|c|} \hline & A & B & C & D & E \\ \hline 1 & Required Annuity Payments & & & & \\ \hline 2 & & & & & \\ \hline 3 & Father's current age & 50 & & & \\ \hline 4 & Number of years until retirement & 10 & & & \\ \hline 5 & Number of years living in retirement & 25 & & & \\ \hline 6 & & & & & \\ \hline 7 & 1st retirement payment, same purchasing power today as & $55,000 & & & \\ \hline 8 & Inflation rate & 5.00% & & & \\ \hline 9 & Current savings at t=0 & $125,000 & & & \\ \hline 10 & Percentage return earned & 9.00% & & & \\ \hline 11 & & & & & \\ \hline 12 & Step 1. Calculate retirement payments, beginning at t=10 & & Formulas & & \\ \hline 13 & Fixed retirement payments & & \#N/A & & \\ \hline 14 & & & & & \\ \hline 15 & Step 2. Calculate the value of current savings at t=10 & & & & \\ \hline 16 & Value of current savings, 10 years from today & & \#N/A & & \\ \hline 17 & & & & & \\ \hline 18 & Step3.Calculatethevalueoftheannuitydueofretirementpaymentsatt=10 & & & & \\ \hline 19 & Value of annuity due & & \#N/A & & \\ \hline 20 & & & & & \\ \hline 21 & Step4.Calculatethenetamountthatmustbeaccumulatedatt=10toreceivedesiredretirementpayments & & & & \\ \hline 22 & Net amount needed in 10 years & & \#N/A & & \\ \hline 23 & & & & & \\ \hline 24 & Step5.Calculatethevalueofannualdepositneededtomeetdesiredretirementgoal & & & & \\ \hline 25 & Value of annual deposit to meet retirement goal & & \#N/A & & \\ \hline 26 & & & & & \\ \hline 27 & & & & & \\ \hline \end{tabular}