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A couple just got married and they are both 30 years of age. They each plan to retire in 35 years at the age of
A couple just got married and they are both 30 years of age. They each plan to retire in 35 years at the age of 65. They want to be able to receive $150,000 at the end of each year for 25 years, upon retirement (so their first retirement payment will be in year 36.) Currently they have a total of $1,500 in cash savings. How much must they save at the end of each year for the next 35 years so as to have enough money to achieve their retirement goal? Assume the interest rate is 7% and will remain the same. Also assume that they start saving at the end of the first year
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