1. Bob turned 40 years old today. He wants to have enough money in his retirement...

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1. Bob turned 40 years old today. He wants to have enough money in his retirement account at age 65 (in 25 years) to create an annual payment of $100,000 per year for 30 years after his retirement. He currently has no savings, but he plans to invest the same amount at the beginning of each year starting today. [Hint: Convert the 30-year retirement annuity to a lump sum value as of Charlie's retirement date.] a. If Bob can earn 8% per year on his savings, is an annual investment of $20,000 enough? b. Using goal seek, find the minimum annual investment necessary to meet his goal if he can earn 8% per year on his savings. [Write the inputs used for the goal seek equation below your answer.] c. Use the PMT function to solve for the minimum annual investment necessary if he can earn 8% per year on his savings. How is this answer compared to answer in b) and give reason for this. 1. Bob turned 40 years old today. He wants to have enough money in his retirement account at age 65 (in 25 years) to create an annual payment of $100,000 per year for 30 years after his retirement. He currently has no savings, but he plans to invest the same amount at the beginning of each year starting today. [Hint: Convert the 30-year retirement annuity to a lump sum value as of Charlie's retirement date.] a. If Bob can earn 8% per year on his savings, is an annual investment of $20,000 enough? b. Using goal seek, find the minimum annual investment necessary to meet his goal if he can earn 8% per year on his savings. [Write the inputs used for the goal seek equation below your answer.] c. Use the PMT function to solve for the minimum annual investment necessary if he can earn 8% per year on his savings. How is this answer compared to answer in b) and give reason for this.