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1. Assume that your father now 40 years old, that he pans to retire in 20 years and that the expects to live for 25
1. Assume that your father now 40 years old, that he pans to retire in 20 years and that the expects to live for 25 years after he retres, that is until he is 85. He wants a fored retirement income that has the same purchasing power at the time he retires as sh75.000 nos today he realize that the real value of his retirement income wit decine yea. by year after he retires) His retirement income wil begin the day he retires 20 years from today and he will then get 24 additional annual payments Inflation is expected to be 4 percent per year from today forward the currently has kn 200.000 saved up and ne expects to earn a return on this savings of 7 percent per year annual compounding to the nearest doftar how much must be save during each of the next 20 years with deposits being made at the end of each year to meet his retement goal
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