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A person expects to earn 3 0 , 0 0 0 a year for the next 4 0 years and anticipates 2 0 years of

A person expects to earn 30,000 a year for the next 40 years and anticipates 20 years of retirement. The person expects a zero real interest net of inflation. a. How much should be saved for retirement on two-thirds of income?
b. If the expected real rate of interest is 5% p.a., what would be the required annual savings?

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