What is the Annual Savings needed for retirement?

S40,000 10 25 5.00% $115,000 700% Retirement income today Years to retirement of retirement Inflation rate Savings Rate of return Formulas Calculate value of savings in 10 years: Savings att 10 Calculate value of fixed retirement income in 10 years: Retirement income att-10 Calculate value of 25 beginning-of-year retirement att 10 Retirement payments att-10 Calculate net amount needed at t 10 Value of retirement payments Value of savings #N/A Net amount needed Calculate annual savings needed for next 10 I savings needed for retirement Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $40,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 5%. He currently has $115,000 saved, and he expects to earn 7% annually on his savings. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? Do not round your intermediate calculations. Round your answer to the nearest cent