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 $23,000 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 $943,000. Third, after she passes on at the end of the 20 years of withdrawals, he would like to leave an inheritance of $600,000 to her daughter Rebecca. Marcy can afford to save $2,500 per month for the next 15 years.

If Marcy can earn a 12 percent EAR before she retires and a 10 percent EAR after she retires, how much will she have to save each month in Years 16 through 30?

Multiple Choice

• $2,715.10

• $2,661.87

• $2,608.63

• $3,977.76

• $4,897.85