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Pu=361,250 21. Andrew is planning his retirement which he anticipates will happen in 25 years. He plans to live another 20 years after that. He
Pu=361,250 21. Andrew is planning his retirement which he anticipates will happen in 25 years. He plans to live another 20 years after that. He determines that he will need $3,000 per month at the beginning of each month to live on during retirement. During retirement he plans on keeping his money in an account that earns 9% compounded quarterly. At the end of the 8th year of retirement he plans on trekking to the arctic which he anticipates will cost $35,000. He wants to have enough left over at his death to fund a student bursary that will pay $4,000 per year in perpetuity in an account that earns 7% compounded monthly. Currently he can invest money into an account that earns 8% EAR and he plans on making monthly payments. He currently has $9,000 in his account. How much must he put aside each month to afford his plans
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