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 26500 per month for 25 years, with the first payment received 30 years and 1 month from now. Second he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of 365000. Third after he passes on at the end of the 25 year withdrawals he would like to leave an inheritance of 1625000 to his nephew Frodo. He can afford to save 3000 per month for the next 10 years. If he can earn EAR of 11 percent before he retires and an EAr of 8 percent after he retires, how much will he have to save each month in years 11 through 30?

Question 10 (of 10 100 points Problem 6-57 Calculating Annuity Values [LO11 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 $26.500 per month for 25 years, with the first payment received 30 years and 1 month from now Second he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $365 000. Third, after he passes on at the end of the 25 years of withdrawals, he would like to leave an inhentance of $1 625.000 to his nephew Frodo. He can afford to save $3,000 per month for the next 10 years if he can earn an EAR of 11 percent before he retires and an EAR of 8 percent after he retires how much will he have to save each month in yeais 11 through 30? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Monthly savings References eBook & Resources Worksheet Problem 6-57 Calculating