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Homer Simpson plans to retire in 25 years (1st withdrawal in year 26). He is told by Ned Flanders that a desirable standard of living
Homer Simpson plans to retire in 25 years (1st withdrawal in year 26). He is told by Ned Flanders that a desirable standard of living in 26 years will require $250,000 per year. Homer wants to be able to maintain that level of purchasing power forever (Assume inflation =4% per year). Homer plans to increase his savings by 3% per year and expects to earn 7% per year on his investments. How much does Homer have to save the first year to fund his retirement goal? \begin{tabular}{l} $125,726 \\ \hline$67,896 \\ \hline$74,993 \\ \hline$99,990 \\ \hline$90,527 \end{tabular}
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