Chad and Kate (both currently 56) have determined that they will require retirement income equal to $93,000

in todays dollars, based on their current income. They plan to retire in 8 years and wish to assume an after-tax return

on their investments, prior to retirement, of 8%. They plan to readjust their assets after retirement and believe that

their net return will drop to 6%. Chads parents are both in their late eighties, and Kates parents are in their seventies.

Chad and Kate assume that retirement will last for 30 years, and that inflation will average 2%.

What is the amount of capital necessary at the start of retirement to support their income needs throughout

retirement?