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James wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income
James wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $17,500 per month for 25 years, with the first payment received 30 years and one month from now. Second, he would like to purchase a cabin in River Grove in 10 years at an estimated cost of $345,000. Third, after he passes on at the end of 25 years of withdrawals, he would like to leave an inheritance of $2,000,000.00 to his nephew Lennox. He can afford to save $2,350 per month for the next 10 years. If he can earn an EAR of 10% before, he retires and an EAR of 7% after he retires, how much will he have to save each month in years 11 through 30
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