USE EXCEL

Youre bored at work and so want to figure out how long until you can retire. Suppose that you have $700,000 in savings today (today is 1-Jan-2021). This savings account earns a 3% return each year. Specifically, the interest accrues each day at a daily rate of 0.03/360, and the interest compounds annually (i.e. the interest gets added to the interest-earning principal at the end of each year). From your salary, you will contribute $22,000 in additional savings at the end of each year, starting one year from today. You calculate that once these savings reach or exceed $1 million, you will retire. (For this problem, I suggest you use Excel.)

1. How many years and days will it take for you to have enough savings (including accrued interest) for you to retire?

2. You just spent $1000 today on a ticket to Hawaii. If you hadnt, you would have started with $701,000 in savings. How much earlier could you retire if you had not bought this ticket?