Step 4: Solving Annuities

In the Sheet you renamed "Solving Annuities", the FIRST thing that should be included is the list of data you are using. You will list the following variables at the very top of your submission. Failure to do this will make it impossible to mark your work!

• ${A} = 2x your birth year + your birth date (ex. if you were born in the year 2000 on September 30, this number will be 2030 x 2 = $4060)
• {B} years= your current age
• ${C} = the price of your dream car
• {D}% = the APR (nominal annual rate) for financing the vehicle

THIS LIST OF VARIABLES MUST BE STATED BEFORE YOU COMPLETE ANY CALCULATIONS!

Problem

You have decided that you would like to retire at age 65. You would like your monthly pension to be{A}. Your RRIF (Registered Retirement Income Fund) earns 3.00% p.a. compounded semi-annually for 25 years after you retire.

REMEMBER: When using Excel for general annuities,rate =(1 + i)^CY/PY- 1

1. 1. How much money do you need in your account when you retire?
   2. How much money do you need in your accountnow (at your current age of {B} years)?
   3. Once you retire, you intend to buy your dream car and will contribute a down payment of $10,000. If the vehicle costs{C} and can be financed for {D} compounded annually, what is your monthly payment on the vehicle if you finance for 96 months?

Format your Workbook in aprofessionalandvisually appealingway. Your answers will not be marked correct if the proper Excel function is not used or linked to the appropriate cells. Use asans seriffont(no larger than size 13) that will be consistent throughout your Workbook. Highlight your final answers so that they are clearly visible. Be creative, butespecially professional!