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Required Annuity Payments Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25 years
Required Annuity Payments Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25 years after he retires - that is, until age 85 , He wants his first retirement payment to have the same purchasing power at the time he retires as 550,000 has fudoy He wants all of his rubsequent retirement payments his retirement income will deciline year by year after he retires). His retirement income will beg in th thay he retires. 10 years from today, and he will then receive 24 additional annual payments. Infiation is expected to be 6% per year from today forward. He currently hes $125,000 saved and expects to eam a return on his savings of 9% per year with annual compounding. To the nearest doslar, how much must he save duning each of the next 10 years (with equal deposits being made at the end of each year, beginning a year from today) to meet his retirement goal? (Notes Neither the amount he saves nor the amount he withdraws upon retirement is a growing annuity.) Do not round intermedlate calculations. Round your antwer to the nearest dollar
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