Marcy Gross wants to save money to meet three objectives. First, she would like to be able to retire 30 years from now with retirement income of $30,000 per month for 20 years, with the first payment received 30 years and 1 month from now. Second, she would like to purchase a cabin in Jersey Coast in 15 years at an estimated cost of $669,000. Third, after she passes on at the end of the 20 years of withdrawals, he would like to leave an inheritance of $750,000 to her daughter Rebecca. Marcy can afford to save $2,100 per month for the next 15 years.

If Marcy can earn a 10 percent EAR before she retires and a 9 percent EAR after she retires, how much will she have to save each month in Years 16 through 30?

Multiple Choice

• $7,016.88

• $8,146.09

• $8,497.60

• $7,160.08

• $7,303.28