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You believe you will need to have saved $480,000 by the time you retire in 40 years in order to live comfortably. If the inte

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Answer #1

Annual Savings(Annuity) = [Amount needed(FVA) * r] / [(1 + r)n - 1]

= [$480,000 * 0.06] / [(1 + 0.06)40 - 1]

= $28,800 / 9.2857 = $3,101.54

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