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Problem 2.1. Diana turned 45 years old today. She plans to retire when she turns 65. She expects to live 25 years after retirement. She

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Problem 2.1. Diana turned 45 years old today. She plans to retire when she turns 65. She expects to live 25 years after retirement. She estimates she will need $60,000 each year (when she turns 66 years, 67 years, ..., 90 years) from retirement savings. The interest rate is 8% per year. a. How much retirement savings should she have when she retires (that is, when she turns 65)? 6 points b. Diana already has $25,000 in retirement savings today. She plans to save the same fixed amount each year over the next 20 years (when she turns 46 years, 47 years, ---, 65 years). How much should she save each year to meet her retirement goal? 6 points

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