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Bill, age 4 5 , wants to retire at age 6 0 . He currently earns $ 6 0 , 0 0 0 per year.
Bill, age wants to retire at age
He currently earns $ per
year. His goal is to replace of his
preretirement income. He wants the
retirement income to be adjusted for
inflation. Bill has an investment
portfolio valued at $ which is
currently earning average annual
returns. Bill expects inflation to
average and, based on his family
health, predicts he will live to age
Bill is currently saving of his gross
income at each yearend and expects
to continue this level of savings. Bill
wants to ignore any Social Security
benefits for purposes of retirement
planning.
How much total capital will Bill
need at age
A $
B $
C $
D $
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