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A couple anticipate retiring in 25 years and would like to have a retirement income equal to 80% of their preretirement income, in today's dollars,

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A couple anticipate retiring in 25 years and would like to have a retirement income equal to 80% of their preretirement income, in today's dollars, adjusted for expected compensation increases. They will also each receive $25,000 per year in Social Security benefits upon retirement. Steve, age 37, salary - 76,000, expects annual salary increase of 3.5% Maggie, age 37, salary 57,200, expects annual salary increase of 5% Current investment value is $159,273 Assume they can earn 7% per year on investments. They want to know what amount of capital will be necessary to accumulate at retirement to supplement their assumed Social Security benefits, starting at age 62. They explect to be in retirement for 25 years

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