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Please help solve. your father is 50 years old and will retire in 10 years... question. Your father is 50 years old and will retire
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Your father is 50 years old and will retire in 10 years. He expects to llve 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 $50,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the doy he retires, 10 years from today, at which time he will recelve 24 additional annual payments. Annual inflation is expected to be 4ne. He currently has $220,000 saved, and he expects to earn 8% annually on his savings. The data has been collectod in the Microsort 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 intermediste calculations. Round your answer to the nearest cent. B26 fx 1 Required annuity payments \begin{tabular}{|r|r|c|} \hline \multicolumn{1}{|c|}{ B } & \multicolumn{1}{c|}{ D } & E \\ \hline & & \\ \hline$50,000 & \\ \hline 10 & \\ \hline 25 & \\ \hline 4.00% & \\ \hline$220,000 & \\ \hline 8.00% & Formulas \\ \hline & & #N/A \\ \hline \end{tabular} 13 Calculate value of fixed retirement income in 10 years: 14 Retirement income at t=10 15 16 Calculate value of 25 beginning-of-year retirement 16 payments at t=10 : 17 Retirement payments at t=10 19 Calculate net amount needed at t=10 : \begin{tabular}{l|l|l|} \hline 20 & Value of retirement payments & #N/A \\ 21 & Value of savings \\ 22 & Net amount needed \\ 23 & & \\ 24 & Calculate annual savings needed for next 10 years: \\ \hline 25 & Annual savings needed for retirement & \\ \hline 26 & & \end{tabular} 27 28 your father is 50 years old and will retire in 10 years... question.
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