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You are saving for retirement. You start your first deposit one year from now and want...

You are saving for retirement. You start your first deposit one year from now and want to make 40 identical end-of-year deposits. After 40 years, you want in your account a sufficient amount so that you can have the same purchasing power as $30,000 today for 20 years. Assuming inflation of 3% and investment rate of 6%, how much do you have to save annually to achieve this. Assume no inflation following retirement.

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Answer #1

value of withdrawle at end of 40 years = P W 40th yea = 30,000 / Citig 20 I icitigo Because no inflation during withdrawls -

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