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Stephanie just turns 3 0 - year - old today. Her current annual salary is $ 5 0 , 0 0 0 and her annual

Stephanie just turns 30-year-old today. Her current annual salary is $50,000 and her annual salary
will grow at 3% every year until her retirement. She plans to save 10% of her annual salary each
year for her retirement and the first deposit starts today. She plans to retire when she turns 65-year-
old, and she wants to withdraw a constant amount every year from her retirement savings for
another 20 years (totally 20 payments). She will start to withdraw as soon as she turns 65. Given
the interest rate is constant at 10% compounded annually, at most how much she can withdraw
from her retirement savings every year? (5 points)

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