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Mr. Smith retires in exactly 20 years. At that time he desires to have accumulated enough money so that he can consume $100,000 per year
Mr. Smith retires in exactly 20 years. At that time he desires to have accumulated enough money so that he can consume $100,000 per year for perpetuity starting at that time. He, furthermore, wishes to make equal payments to his account each period -- 20 payments in all. What should his yearly savings be to achieve these objectives, if the after tax return available to him is 15%?
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