Please Explain and Show the Formulas

- Open a blank Excel workbook (i.e., do not use class exercise template) to perform your calculations. As I said in class, keep a data-entry section and calculation cells separated. - Click "Homework Assignments Ch _" and upload your completed Excel file. No submission will be accepted beyond the deadline. - Your Excel file needs to be named to reflect your name and the assignment number. For example, I may name my file for Assignment \#1 "nishi_hiro_A1." - Format your answers to two decimal places. In each question, highlight the cell of the you answer in yellow (e.g., $812.51,12.35% ). - Solutions will not be presented during the semester. Instead, we will go over some of the key problems in the exam review session(s). Question 2 (2-step problem-Annuity) You wish to retire in 35 years from today, and you will need $250,000 per year after you retire. The first retirement funds will be withdrawn one year from the day you retire and you will be making 28 such withdrawals. You can earn 5% annual interest on your retirement funds. a) To have enough funds for retirement, how much must you deposit (a lump sum) in an account today? ( 2 points) Hint: Your first step is to calculate PV35. b) Suppose that you cannot afford to make a single lump sum deposit today. To have enough funds for your desire retirement, how much must you deposit at the end of each year for the next 35 years? Assume the last deposit will be made on the day you retire. (1 points)