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James & Julie are both 3 7 years old and have two children. James makes $ 7 0 , 0 0 0 and Julie makes

James & Julie are both 37 years old and have two children. James makes $70,000 and Julie makes $40,000 per year.
Their expected portfolio rate of return is 8.5%
They want to retire at 62 with 80% of their preretirement income. They expect to live to age 95
They expect that Social Security will provide $24,000 to him and $20,000 to her at normal retirement age of 67
They want to send their children to a state university. The current education inflation rate is 6%. The current cost per year is $20,000. The children are expected to attend school for 5 years. The children are ages 8, and 6 & will start college at age 18
5.They have $150,000 in investment assets and cash & cash equivalents
At retirement, they want to buy a specialized RV. The current cost is $250,000 and is expected to increase with general inflation
They are currently saving $11,000 per year (James $7,000? Julie $4,000) and have employer matches of $3,300 total (3% maximum) for a total of $14,300 annually
The general inflation rate is expected to be 3%
Calculate & solve for the present value of all goals (please make sure to show all work and include all steps covered in the example in class)
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