The Smiths are planning to retire in 35 years. They want an annual real income of

$45000, paid at the end of each month of their expected 20-year retirement, and want

to bequeath $500,000 in real dollars to their son at the end of their retirement. In

addition, theirs sons university education, to begin in 8 years, is expected to cost

$10,000 real dollars per year due at the start of each year (his program is 4 years) . They recently purchased a

house for 250,000, with $50,000 in cash and a $200,000, 20 year mortgage, carrying a

7% interest rate compounded yearly, paid monthly. Over the next 55 years, the nominal

house value is expected to grow 4% annually. The Smiths plan to live in the rest of their

house for thte rest of their lives and the house will be sold after their demise. The

Smiths expect to earn 6% nominal EAR on their retirement savings.

How much money do they need to save in real dollars at the end of each month for the

next 35 years, on top of their monthly mortgage payments to meet their financial goal