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Lee plans to retire in 2 0 years with a nest egg of $ 6 M . He has already saved up $ 4 0
Lee plans to retire in years with a nest egg of $M He has already saved up $ in an investment account that generates an annual rate of return of compounded monthly.
a Numerically show whether Lees investment account balance will reach $M in years, based on the information provided above.
b The correct answer for part a indicates that Lees investment account will fall short of his retirement goal of $M in years. Thus, he continues his pursuit by making additional fixed contributions at the beginning of each quarter to the same investment account until he retires years later. Calculate the amount of his quarterly contribution needed for achieving his goal. $
c Lee now retires with $M that is transferred to a retirement account offering an annual return of compounded monthly. He withdraws monthly from the retirement account to cover his living expenses that grow at a monthly inflation rate of Lee takes out his first withdrawal of $ at the end of the month. Calculate the amount of Lees inheritance upon his death after enjoying years of retirement.
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