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Lucy would like to receive $60,000 in the first year of her financial independence at age 60. After this first income payment, she is content
Lucy would like to receive $60,000 in the first year of her financial independence at age 60. After this first income payment, she is content with her annual income growing at the rate of inflation. She would like this income to be paid for 40 years. She expects inflation to be 3% per year and her investments to achieve nominal returns of 8% per year (compounded yearly). Assuming that all calculations are to be performed in 'real' terms, how much does she need to save for financial independence (to the nearest dollar)?
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