Excel Online Structured Activity: Required annuity payments Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $45,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 5%. He currently has $135,000 saved, and he expects to earn 7% annually on his savings. 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. x Open spreadsheet How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? Do not round your intermediate calculations, Round your answer to the nearest cent. 10 Check My Work Reset Problem x] Excel File Home Insert Data Review 5 R X Cut View Help Tell me what you want to do - 10 AA== 22 Wrap Text .A.A. Merge & Center Paste Da Copy Copy Format Painter pboard BIUR Unde B11 1 Required annuity payments $45,000 4 5 6 7 Retirement income today Years to retirement Years of retirement Inflation rate Savings Rate of retum 25 5.00% $135,000 70096 10 11 Calculate value of savings in 10 years: Savings att = 10 Calculate value of foxed retirement income in 10 years: Retirement income att = 10 Calculate value of 25 beginning-of-year retirement 16 payments at t=10: 17 Retirement payments att = 10 19 Calculate net amount needed at t10 20 Value of retirement payments 21 Value of savings Net amount needed NA 24 Calculate annual savings needed for next 10 years 25 Annual savings needed for retirement Sheett Seved to Cangas