Pioblem 4=201 Assume that your parents wanked to have $160.000 saved for college by your 16 h birthday and they started saving on your first birthday. They saved the same amoinl each year on your birthday and earned 8% per year on their irvesiments. Complete the stept below using cell references to grven data or prontous calctidationt In tome caces, a simple cell reference is all you need. To copvipaste a formnla acrost a roir or down a Excel finction is to be weed the directions will specifo the use of that function Do not ope in numerical data into a cell or function. Instead, make a refermee to the cell in which the data is formd Make your computations only in the bine cellt highlightied below. In all caxes, uniest othenrise directed, we the eav liert appearance of the data in your formulas, wenally the Given Data section. a. How much would they have to save each year to reach their goal? b. If they think you will take five years instead of four to graduste and decide to have $200,000 saved iust in case, how much would they have to save each year to reach their new goal? Financial goal Interest rate Number of period. a. How much would they have to save each year to reach their goal? Amounk to save b. If they think you will take five years instead of four to graduate and decide to have $200,000 saved just in case, how much would they have to save each year to reach their new goal? Financial goal Amount to save uirements 1 In cell D14, by using cell references, calculate the amounk to save under the first scenano (1 pt.) 2 In cell D20. by using cell references. calculate the amount to save under the second scenario (1 pt). Assume that Social Security promises you $40,000 per year starting when you retire 45 years from today (the first $40,000 will be paid 45 years from now). If your discount rate is 7%, compounded annually, and you plan to live for 15 years after retiring (so that you will receive a total of 16 payments including the first one), what is the value today of Social Security's promise? Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel finction is to be used, the directions will specify the use of that finction. Do not type in numerical data into a cell or finction. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. Requirements 1 In cell D11, by using cell references, calculate the value of Social Security's promise in year 44 (one year before you retire) (1 pt.). Note: The output of the expression or function you typed in this cell is expected as a positive number. 2 In cell D12, by using cell references, calculate the value of Social Security's promise today ( 1pt. )
