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A client has determined an annual retirement income need of $40,000 per year in todays dollars. In performing a retirement needs analysis, the client wants

A client has determined an annual retirement income need of $40,000 per year in todays dollars. In performing a retirement needs analysis, the client wants you to assume a 5% annual inflation rate, an 8% after-tax return, and a 20-year retirement period. The client plans to retire in 12 years. What is the annual payment needed at the end of each year to meet the clients retirement income goal using a level payment savings approach?

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