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Assume that your father is now 5 0 years old, plans to retire in 1 0 years, and expects to live for 3 0 years
Assume that your father is now years old, plans to retire in years, and expects to live for years after he retiresthat is until age He wants his first retirement payment to have the same purchasing power at the time he retires as $ has today. He wants all of his subsequent retirement payments to be equal to his first retirement payment. Do not let the retirement payments grow with inflation: Your father realizes that if inflation occurs the real value of his retirement income will decline year by year after he retires. His retirement income will begin the day he retires, years from today, and he will then receive additional annual payments. Inflation is expected to be per year from today forward. He currently has $ saved and expects to earn a return on his savings of per year with annual compounding. To the nearest dollar, how much must he save during each of the next years with equal deposits being made at the end of each year, beginning a year from today to meet his retirement goal?
Ie what must his annual deposit amount be into his account, over the next years, in order to make this plan work?... note that in this framework he's going to put his last deposit into the plan and immediately take out his first annual withdrawal to live on
Round your final answer, but keep extra decimal places around during your intermediate steps
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