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Answer in an excel spread sheet so i can understand the breakdown Computing annuity payment: Kevin...

Answer in an excel spread sheet so i can understand the breakdown

Computing annuity payment: Kevin Winthrop is saving for an Australian vacation in three years. He estimates that he will need $5,000 to cover his airfare and all other expenses for a week long holiday in Australia. If he can invest his money in an S&P 500 equity index fund that is expected to earn an average annual return of 10.3 percent over the next three years, how much will he have to save every year if he starts saving at the end of this year?

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Future value required S5,000 Term- 3 Years Annual return r-10.3% Future value required -Future value of annual deposits (Annuity) S5,000Annual deposit (1n -11/r 5,000 Annual deposit * [( 1 + 10.3%)^3-1] / 10.3% S5,000 Annual deposi [1.34191973 1/0.103 S5,000Annual deposit 3.319609 Annual depositS5,000/3.319609 -$1,506.20148 - S1,506(Rounded) Ans Every save amount - S1,506 (Approximately)

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