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Bilbo Baggins wants to save money to meet three objectives.First, he would like to be able to retire 30 years from now withretirement income of $25,000 per month for 25 years, with the firstpayment received 30 years and 1 month from now. Second, he wouldlike to purchase a cabin in Rivendell in 15 years at an estimatedcost of $603,000. Third, after he passes on at the end of the 25years of withdrawals, he would like to leave an inheritance of$750,000 to his nephew Frodo. He can afford to save $1,600 permonth for the next 15 years. Required:If he can earn a 12 percent EAR before he retires and a 9percent EAR after he retires, how much will he have to save eachmonth in years 16 through 30?A) $4,833.06B) $6,367.65C) $5,030.33D) $4,931.69E) $6,066.58