Your father is 50 years old and will retire in 10 years. Heexpects to live for 25 years after he retires, until he is 85. Hewants a fixed retirement income that has the same purchasing powerat the time he retires as $55,000 has today. (The real value of hisretirement income will decline annually after he retires.) Hisretirement income will begin the day he retires, 10 yearsfrom today, at which time he will receive 24 additional annualpayments. Annual inflation is expected to be 3%. He currently has$65,000 saved, and he expects to earn 8% annually on his savings.The data has been collected in the Microsoft Excel Online filebelow. Open the spreadsheet and perform the required analysis toanswer the question below.

Open spreadsheet

Required annuity payments
Retirement income today	$55,000
Years toretirement	10
Years ofretirement	25
Inflation rate	3.00%
Savings	$65,000
Rate ofreturn	8.00%
Calculate value of savings in 10years:			Formulas
Savingsat t = 10			#N/A
Calculate value of fixed retirement income in 10years:
Retirement income at t = 10			#N/A
Calculate value of 25 beginning-of-year retirementpayments at t =10:
Retirement payments at t = 10			#N/A
Calculate net amount needed at t =10:
Value ofretirement payments			#N/A
Value ofsavings			#N/A
Net amount needed			#N/A
Calculate annual savings needed for next 10years:
Annualsavings needed for retirement			#N/A

How much must he save during each of the next 10 years(end-of-year deposits) to meet his retirement goal? Do not roundyour intermediate calculations. Round your answer to the nearestcent.

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