Steven, age 43, earns $80,000 annually; and his wage replacement ratio has been determined to be 80%. He expects inflation will average 3% for his entire life expectancy. He expects to work until 68 and live until 90. He anticipates an 8% return on his investments. Additionally, Social Security Administration has notified him that his annual retirement benefit, in today s dollars will be $26,000. Using the capital needs / annuity method, calculate how much capital Steven will need to be able to retire at age 68.

$836,000
	$1,760,000
	$1,061,342
Correct answer:	$1,112,863

Please explain how to solve in details and how to do in excel. Thank you!