Excel Online Structured Activity:

Required annuity payments

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 $$55,000$ 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 $$125,000$ saved, and

he expects to earn $8\%$ annually on

his savings. The data has been