Hanford MacDwaddy is 47 years old today and makes $78,000 per year.  His wage replacement ratio has been determined to be 72%.He expects inflation will average 3.5%/year over his lifetime.  He expects to earn 8% on his investments andhe plans to retire at age 67.You havehelped him determine his estimated social security retirement benefit at his fullretirement age of 67 to be $18,000 per year (in today's dollars).  Due to longevity in his family he wants youto help him determine his capital needs for retirement assuming he lives to age97.

Answer the following questions on the next Excel worksheet labeled "Capital Needs".Rely on the use of the TVM functions we have learned so far and keep your answers within the shaded cells.

Questions:

1.  Calculate Hanford's capital needed at retirement at age 67 using the Pure Annuity, Capital Preservation and PPP models.You will have 3 separate solutions here.Remember we do this calculation in BEGIN mode since we need the money each year at the start of each year.

2.  Calculate the monthly savings Hanford must make at the end of each month to accumulate the capital needed as ifdentified in Question 1.You will have 3 separate solutions here as well.

Attachment:- problemworkout2.xlsx