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1 5 Eric is 2 5 years old and wishes to receive $ 6 0 , 0 0 0 after tax, in today's dollars, at

15 Eric is 25 years old and wishes to receive $60,000 after tax, in today's dollars, at the beginning of each of his retirement years. His financial planner suggested a reasonable ATR (average tax rate) for calculations is 25%. He expects to retire at age 67 and plans to fund his retirement to age 92. Total pension (employer, CPP, etc) income he expects amounts to $45,000, before tax, in today's dollars. Inflation average over the-years is forecast at 3% per annum. Based on the portfolio's weighted average asset allocation, the forecast of nominal returns during retirement, and before retirement, are 7% and 9%, respectively. How much, approximately, does Eric need to save before retirement at the end of each year to meet his retirement goal (round to the nearest dollar)?
$6,598
$8,929
$4,877
Nil
$7,666
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