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Maria plans to retire at age 67, and she expects 2 percent inflation from now until retirement. Her current expenses are $ 36,000. Use the
Maria plans to retire at age 67, and she expects 2 percent inflation from now until retirement. Her current expenses are $ 36,000. Use the adjusted expense method to estimate Maria's pretax retirement income needs in the first year of retirement (in future dollars), assuming that she is currently 22 years old. Assume that the reduction in expenses for employment costs and mortgage payments will save her $ 15,000 per year in current dollars and that her additional costs for insurance and vacations will be $7,000. (Round answers to O decimal places, e.g. 5,275.)
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