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2. (18 points) Your father is 55 years old and plans to retire in 1 he 2 years. After he retires expects to live for
2. (18 points) Your father is 55 years old and plans to retire in 1 he 2 years. After he retires expects to live for 25 years. He wants a fixed retirement income that has the same purchasing power at the time he retires as $120,000 has today (he realizes that the real value of his retirement i ncome will decline year by year after he retires). His retirement income will begin the day he retires, 12 years from today. Inflation is expected to be 2 percent per year from today forward; your father currently has $300,000 saved up; and he expects to earn a nominal annual return on his savings of 10 percent per year. To the nearest dollar, how much must he save during each of the next 12 years (with deposits being made at the end of each year) to meet his retirement goal
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