Assume that your father is now 50 years old, plans to retire in 10 years,...
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Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25 years after he retires that is until age 85. He wants his first retirement payment to have the same purchasing power at the time he retires as 50000 has today. He wants all his subsequent retirement payments to equal to his first retirement repayement. His retirement income will begin the day he retires, 10 years from today, and he will then receive 24 additional annual payments. Inflation is expected to be 6% per year from today forward. He currently has 150,000 saved and expects to earn a return on his savings of 9% per year with annual compounding. How much must he save during each of the next 10 years to meet his retirement goal?
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