Assume that Social Securify promises you $40,000 per year starting when you retire 45 years...
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Assume that Social Securify promises you $40,000 per year starting when you retire 45 years from today (the first $40,000 will be paid 45 years from now). If your discount rate is 7%. compounded annually, and you plan to live for 15 years after retiring (so that you will receive a total of 16 payments including the first one), what is the value today of Social Security?'s promise? Complete the steps below tusing cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copypaste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel fionction is to be used, the directions sill specify the tuse of that function. Do not type in muncrical data into a cell or finction. Instead, male a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below, In all cases, unless othenise dorected, wse the earliest appearance of the data in your formulas, ustally the Given Data
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