Please show answer it in excel and show all formula Today is your 40th birthday (this is the beginning of the period, i e , time 0) You expect to retire at age 65 and actuarial tables suggest that you will live to be 85 You want to move to Hawaii when you retire (on your 65th birthday) You estimate that it will cost you $50,000 to make the move on your 65th birthday Starting on your 65th birthday and ending on your 84th birthday (all withdrawals are at the beginning of the year), you will withdraw $40,000 for annual living expenses Assume the interest rate is 4 How much will you need to have saved by your retirement date (year 65) Use the timeline method to solve this (Hint the present value, on your 65th birthday, of those costs (40,000 each year from years 65 84) as well as the $50,000 needed at age 65 The timeline method essentially implies that you are taking each cash flow separately and finding the present value of that cash flow ) What is your savings calculated in (a) worth today (at year 40) (Hint Find the present value of the amount (answer to 2a) at age 65 ) You start saving for this goal today with the intention of saving an equal amount each year Each amount is deposited at the beginning of the year You will make the last payment on your 64th birthday Withdrawal starts as expected at year 65 How much would you need to save each year (Hint Need to find the annual payment of an annuity when the payment starts at the beginning of the year where the present value of the annuity (answer to 2b) is known The unknown is the amount of money to be saved each year )

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Question: Please show answer it in excel and show all formula Today is your 40th birthday (this is the beginning of the period, i.e., time 0).

Please show answer it in excel and show all formula

Today is your 40th birthday (this is the beginning of the period, i.e., time 0). You expect to retire at age 65 and actuarial tables suggest that you will live to be 85. You want to move to Hawaii when you retire (on your 65th birthday). You estimate that it will cost you $50,000 to make the move on your 65th birthday. Starting on your 65th birthday and ending on your 84th birthday (all withdrawals are at the beginning of the year), you will withdraw $40,000 for annual living expenses. Assume the interest rate is 4%.

How much will you need to have saved by your retirement date (year 65)? Use the timeline method to solve this. (Hint: the present value, on your 65th birthday, of those costs (40,000 each year from years 65-84) as well as the $50,000 needed at age 65. The timeline method essentially implies that you are taking each cash flow separately and finding the present value of that cash flow.)
What is your savings calculated in (a) worth today (at year 40)? (Hint: Find the present value of the amount (answer to 2a) at age 65. )
You start saving for this goal today with the intention of saving an equal amount each year. Each amount is deposited at the beginning of the year. You will make the last payment on your 64th birthday. Withdrawal starts as expected at year 65. How much would you need to save each year? (Hint: Need to find the annual payment of an annuity when the payment starts at the beginning of the year where the present value of the annuity (answer to 2b) is known. The unknown is the amount of money to be saved each year.)