Question
As a forward-thinking individual, you are planning for your retirement. You plan to work for 20 more years. For the next 10 years, you can
As a forward-thinking individual, you are planning for your retirement. You plan to work for 20 more years. For the next 10 years, you can save $4,000 per year (with the first deposit being made one year from today).In Year 10, you plan to buy a weekend vacation home in the mountains for $40,000. How much must you save annually in years 11 through 20 so that you have exactly $300,000 saved when you retire? Assume you can earn 10%, compounded annually, for each of the next 20 years, and ignore any tax implications associated with your investments.
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