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 $35,000 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 4%. He currently has $60,000 saved, and he expects to earn 9% 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.

(PLEASE USE EXCEL AND THE FORMAT BELOW)

1 Required annuity payments 3 Retirement income today 4 Years to retiremen 5 Years of retirement 6 Inflation rate 7 Savings 8 Rate of return $35,000 10 25 4.00% $60,000 9.00% 10 Calculate value of savings in 10 years: 11 Savings att- 10 12 Formulas #N/A 13 14 15 Calculate value of fixed retirement income in 10 years: Retirement income at t-10 #N/A Calculate value of 25 beginning-of-year retirement 16 payments att-10: 17Retirement payments at t- 10 18 #N/A