Please Work this out in an excel spread sheet

Prof. Business has a self-managed retirement plan through her University and would like to retire in 14 years and wonders if her current and future planned savings will provide adequate future retirement income. Heres her information and goals.

Prof. Business wants a 25-year retirement annuity that begins 14 years from today with an equal annual payment equal to $75,000 today inflated at 2.5% annually over 14 years. Her first retirement annuity payment would occur 14 years from today. She realizes her purchasing power will decrease over time during retirement.

Prof. Business currently has $280,000 in her University retirement account. She expects these savings and any future deposits into her University and any other retirement account will earn 8.5% compounded annually. Also, she expects to earn this same 8.5% annual return after she retires.

Answer the following questions to help

Prof. Business finalize her retirement planning.

1. What is Prof. Business desired annual retirement income?

2. How much will Prof. Business need 14 years from today to fund her desired retirement annuity?

3. In addition to the $280,000 balance today, Prof. Business will fund her future retirement goal from question 2 by making 14 annual equal deposits at 8.5% compounded annually into her retirement accounts starting a year from today (the last deposit will be made when Prof. Business retires). How large does this annual deposit need to be in addition to the initial $280,000 invested in Prof. Business retirement fund?

4. This annual figure from #3 is actually less than the Prof.s $13,500 current annual contribution, which makes her feel a little less anxious about her future planned retirement. Also, Prof. Business annual retirement account contribution is based on a percentage of her salary and will increase as her salary increases. However, Prof. Business is worried about her purchasing power eroding during retirement. She would like her first retirement withdrawal to be equal to the amount you found in #1, and then she increase each successive retirement withdrawal by 3% annually over the remaining 24 withdrawals. How much will Prof. Business need now at retirement given Prof. Business 8.5% expected return? 5. In addition to the $280,000 balance today, Prof. Business will fund her adjusted future retirement goal from question 4 by making 14 annual equal deposits at 8.5% compounded annually into her retirement accounts starting a year from today (the last deposit will be made when Prof. Business retires). How large does this annual deposit need to be in addition to the initial $280,000 invested in Prof. Business retirement fund?

6. Wow, the annual deposit required to fund the growing retirement annuity in question 5 gives Prof. Business major sticker shock. However, she may be willing to accept a lower annual retirement annuity than described in question 4 that loses purchasing power over time but that is hopefully higher than the retirement annuity in questions 1 and 2. Lets account for the fact that her and the Universitys contributions to Prof. Business University retirement plan are based on a certain percentage of her salary and will increase as her salary increases. Based on this formula, her first upcoming end of the year deposit will be $13,500 and lets assume that her annual deposit and salary will grow at a 3% annual rate over the remaining 13 years (14 total deposits) to Prof. Business retirement. Also, she plans to contribute an additional $6,000 at the end of each year until she retires. This will make her first year total deposit $19,500, but only the $13,500 part of this deposit will increase 3% annually, the $6000 part of the deposit will remain fixed each year under current laws. These deposits are in addition to the $280,000 she currently has today in the University retirement plan. Answer the following based on these assumptions.

a) How much money will Prof. Business have in her retirement account immediately after her last deposit 14 years from today?

b) What would be the equal annual payment from her 25-year retirement annuity whose first payment occurs exactly 14 years from today?