Question
Anastasia is planning for her retirement. She is currently 37 years old and plans to retire at age 62 and live until age 97. Anastasia
Anastasia is planning for her retirement. She is currently 37 years old and plans to retire at age 62 and live until age 97. Anastasia currently earns $130,000 per year and anticipates needing 75% of her income during retirement. She believes she can earn 11% on her investments and inflation will be 2% per year. Anastasia would like to preserve her capital so that the capital balance required at age 62 is maintained until age 97. How much must Anastasia save at the end of each year, if she wants to make her last savings payment age 62 to meet her retirement goal and maintain her capital balance?
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