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Bill Smith is 22 years old (at t=0) and is planning for his retirement at age 63 (at t = 41). He plans to save
Bill Smith is 22 years old (at t=0) and is planning for his retirement at age 63 (at t = 41). He plans to save $2,000 per year for the next 15 years (t = 1 to t=15). He wants to have retirement income of $100,000 per year for 20 years, with the first retirement payment starting at t=41. How much must Bill save each year from t=16 to t=40 in order to achieve his retirement goal? Assume he plans to invest in a diversified stock-and-bond ETF that will earn 6% per year on average
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