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You have just turned 30 years old, have just received your MBA, and have accepted your first job. Now you must decide how much money
You have just turned 30 years old, have just received your MBA, and have accepted your first job. Now you must decide how much money to put into your retirement plan. The plan works as follows: Every dollar in the plan eams 7% per year . You cannot make withdrawals until you retire on your 70th birthday. After that point, you can make withdrawals as you see fit. You decide that you will plan to live to 100 and work until you tun of retirement and ending on your one hundredth birthday. You will contrib same amount to the plan at the end of every vear that vou work. How much do vou need to contribute each vear to fund your retirement? The value of the annuity is S (Round to the nearest dollar.)
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