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You estimate that by the time you retire -in 40 years- to purchase an annuity which will be adequate to finance your retirement will cost
You estimate that by the time you retire -in 40 years- to purchase an annuity which will be adequate to finance your retirement will cost you close to $2,000,000. If you can invest annually a constant amount of money X, at an interest rate of 4.25%, for the next 40 years, how much should X be in order to accumulate the $2,000,000 needed?
a): $15,195.11 b) $17,213.57 c) $18,785.24 d) $19,836.77 e): Other
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