• Tutor me about this.[Hanford MacDwaddy is 47 years old today and makes $78,000 per year.His wage replacement ratio has been determined to be 72%. He expects inflation will average 3.5%/year over his lifetime. He expects to earn 8% on his investments and he plans to retire at age 67. You have helped him determine his estimated social security retirement benefit at his full retirement age of 67 to be $18,000 per year (in todays dollars). Due to longevity in his family, he wants you to help him determine his capital needs for retirement assuming he lives to age 97. Answer the following questions on the next Excel worksheet labeled "Capital Needs".Rely on the use of the TVM functions we have learned so far and keep your answers within the shaded cells. Questions: 1. Calculate Hanfords capital needed at retirement at age 67 using the Pure Annuity, Capital Preservation, and PPP models. You will have three separate solutions here. Remember, we do this calculation in BEGIN mode since we need the money each year at the start of each year. 2. Calculate the monthly savings Hanford must make at the end of each month to accumulate the capital needed as identified in Question 1. You will have three separate solutions here as well. All the steps needed to complete this assignment are discussed thoroughly in Chapter 11 of the textbook and in the video lecture. Pages 488–496 in the 6th edition of the book Given Information: Current Age: Retirement Age: Mortality Age: Inflation: Investment ROR: Current Salary: Wage Replacement: Social Security Estimate: Calculations: Total Needs in Todays Dollars: Less Social Security in Todays Dollars: Annual Amount Needed in Todays Dollars: IARR: Models Pure Annuity CP PPP 1st year need at retirement: Pure Annuity/ CP/ PPP---------Capital needed at retirement: Pure Annuity/ CP/ PPP--------Monthly savings to meet Capital Need: Pure Annuity/ CP/ PPP]