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You believe that you will spend $50,000 a year for 25 years once you retire in 40 years. For this purpose, you make annual payments
You believe that you will spend $50,000 a year for 25 years once you retire in 40 years. For this purpose, you make annual payments into a savings plan (the same amount each year until your retirement). If the interest is 5% per year, (a) How much money will you have for your retirement spending when you retire? (b) How much must you save each year to meet your retirement goal?
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