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 $$55,000$ has today. $($The real value of his retirement income will decline annually after he retires.$)$ His retirement income will begin the day he retires, $10$ years from today, at which time he will receive $24$ additional annual payments. Annual inflation is expected to be $6\%.$ He currently has $$60,000$ saved, and he expects to earn $9\%$ 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.

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. Required annuity payments

Retirement income today $$55,000$

Years to retirement $10$

Years of retirement $25$

Inflation rate $6\mathrm{.}00\%$

Savings $$60,000$

Rate of return $9\mathrm{.}00\%$

Calculate value of savings in $10$ years: Formulas

Savings at t $=10$ #N$/$A

Calculate value of fixed retirement income in $10$ years:

Retirement income at t $=10$ #N$/$A

Calculate value of $25$ beginning$-$of$-$year retirement payments at t $=10$:

Retirement payments at t $=10$ #N$/$A

Calculate net amount needed at t $=10$:

Value of retirement payments #N$/$A

Value of savings #N$/$A

Net amount needed #N$/$A

Calculate annual savings needed for next $10$ years:

Annual savings needed for retirement #N$/$A