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You plan to retire in 20 years and would like to have the current equivalent of $1,000,000 in today's purchasing power at retirement. You expect
You plan to retire in 20 years and would like to have the current equivalent of $1,000,000 in today's purchasing power at retirement. You expect inflation to be 2% per year for the next 20 years. How much must you deposit (starting next year) for twenty years so that you can meet your retirement objective if your investments earn 5% per year in nominal terms? (level nominal annuity)
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