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Susan would like to receive $ 5 0 , 0 0 0 in the first year of her financial independence at age 6 0 .

Susan would like to receive $50,000 in the first year of her financial independence at age 60. After this first income payment, she is content with her annual income growing at the rate of 2% per annumbelowthe rate of inflation. She would like this income to be paid indefinitely. She expects inflation to be 2% per year and her investments to achieve nominal returns of 8% per year (compounded yearly). Assuming that all calculations are to be performed in real terms, how much does she need to save for financial independence (to the nearest dollar)?

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