Twyla will graduate from her Master$$s program at age $27$ and at that time will have $$50,000$ from a recent inheritance. For the next $40$ years, she will retain her next egg in an IRA, adding an additional $$8000$ per year in savings from her earnings. Work through the steps below to determine how much these savings will pay out to Twyla as an annuity during her retirement.

A$.$ Use the compound growth formula and FV function in Excel to calculate the present value of Twyla$$s savings. Assume that Twyla earns an annually compounded rate of return of $7\%$ on her investment throughout this period. B$.$ Use the PMT function to determine the monthly annuity that will exhaust the savings calculated above. Assume that Twyla will set up a monthly payment that will completely pay out her savings at the end of $25$ years, when Twyla is $92.$ For this part of the exercise, assume that during Twyla$$s retirement, she receives a rate of return of $6\%,$ compounded monthly. Again, recall that for monthly compounding, you will divide the rate by $12,$ and multiple the period by $12.$ C$.$ Repeat the steps above to calculate how much Twyla will save, and her monthly annuity, if she saves $$12,000$ per year rather than $$8,000.$