Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $24,000 per month for 20 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 15 years at an estimated cost of $542,000. Third, after he passes on at the end of the 20 years of withdrawals, he would like to leave an inheritance of $800,000 to his nephew Frodo. He can afford to save $1,700 per month for the next 15 years.

If he can earn a 10 percent EAR before he retires and a 9 percent EAR after he retires, how much will he have to save each month in Years 16 through 30?

• $6,607.96

• $6,884.71

• $5,805.37

• $5,921.48

• $5,689.26