Question
You want to save money to meet three objectives. First, you would like to retire 30 years from now with a retirement income of $20,000
You want to save money to meet three objectives. First, you would like to retire 30 years from now with a retirement income of $20,000 per month for 25 years with the first payment received 30 years and 1 month from now. Second, you would like to purchase a house in 10 years at an estimated cost of $380,000. Third, after the 25 years of withdrawals, you want to leave an inheritance to your kids of $900,000. You can afford to save $2500 per month for the next 10 years. If you can earn 10% EAR before retirement and 7% EAR after retirement, how much will you have to save each month in years 11-30?
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