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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 $21,000 per month for 20 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 $675,000. Third, after he passes on at the end of the 20years of withdrawals, he would like to leave an inheritance of$500,000 to his nephew Frodo. He can afford to save $2,300 permonth for the next 15 years. Required:If he can earn a 9 percent EAR before he retires and a 5 percentEAR after he retires, how much will he have to save each month inyears 16 through 30?$8,815.19$7,754.47$7,602.42$7,450.38$8,291.47