Mr. Homer's friend Marge has asked for help with her retirement planning. Marge, who turned 27 years old today, has $5,000 already set aside in her retirement account and plans to add an equal amount in real terms at the end of each of the next 38 years so that she can retire at age 65. Her goal is to build a retirement account that will enable her to make 29 annual withdraws with a purchasing power of $50,000 (at today's prices) on her 66th through 94th birthdays. Her retirement account is expected to earn 6.00% per year and the expected inflation rate is 2.50% per year. How much does Marge need to set aside in real terms at the end of each of the next 38 years to meet her retirement goal?<\/p>
<\/p>
The current answer you have posted is incorrect as it calculates the 50,000 per year withdrawals for 38 years when it should have used 29 years. I need to understand the correct steps to come up with the correct solution.<\/p>
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Thanks...<\/p>", "transcribed_text": "", "related_book": { "title": "Financial Accounting and Reporting a Global Perspective", "isbn": "978-1408066621, 1408066629, 1408076861, 978-1408076866", "edition": "4th edition", "authors": "Michel Lebas, Herve Stolowy, Yuan Ding", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/777.jpg", "uri": "\/textbooks\/financial-accounting-and-reporting-a-global-perspective-4th-edition-777", "see_more_uri": "" }, "free_related_book": { "isbn": "1506266355", "uri": "\/textbooks\/regents-geometry-power-pack-revised-edition-978-1506266350-374270", "name": "Regents Geometry Power Pack", "edition": "Revised Edition" }, "question_posted": "2024-06-06 23:02:13", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/shannon-corp-had-the-following-balances-in-receivable-accounts-at", "description": "Shannon Corp. had the following balances in receivable accounts at October 31, 2014 (in thousands): Allowance for Doubtful Accounts $52; Accounts Receivable $2,910; Other Receivables $189; Notes...", "stars": 3 }, { "url": "\/study-help\/international-business\/56-what-is-the-difference-between-ethics-and-social-responsibility-1778020", "description": "5-6. 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