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You are planning for retirement. First, you would like to be able to retire 3 0 years from now with a retirement income stream of

You are planning for retirement. First, you would like to be able to retire 30 years from now with a retirement income stream of $100,000 per year for 20 years, wich the first perment received 31 years from now (exacty, one year after your retitement), Second, you would like to leave an inheritance of $1.000,000 to your children at your death, which we will assume takes place at the end of 20 years of withdrawals. To meet these goals, you will deposit some of your income inso a savings account each year until retirement. You plan on growing the amount you deposit at a constant rate of 1% per year until retirement. Your first deposit will be at the end of this year. Assume that the EAR of 7% and that you do not have any starting savings. 1 A. Compute the amount that you will require in your account at your retirement date (end of year 30) to meet your retirement goals. B.) Determine how much money you must deposit at the end of the first year (as part of your
planned 30 contributions until retirement) to exactlv meet vour retirement goals C.) Now suppose that you will receive a one-time inheritance of $200,000 ten years from
now (at the end of year 10). Given this additional money in your savings account, how
much could vou spend each ver in retirement? Assume the other parameters of the
problem (retirement age, savings plan, end date, inheritance) remain the same as in parts
AandB.

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