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Ed and Linda are near retirement. They have a joint life expectancy of 25 years in retirement. Barbara anticipates their annual income in retirement will

Ed and Linda are near retirement. They have a joint life expectancy of 25 years in retirement. Barbara anticipates their annual income in retirement will need to increase each year at the rate of inflation. Which they assume to be 4%. Based on the assumption that their first year retirement need, beginning on the first day of retirement, for annual income will be 85,000 which they have 37,500 available from other sources and an annual after tax rate of return of 6.5%, calculate their total amount that they need to have when Ed and Linda begin their retirement.

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