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You wish to retire at age 50 and receive annual birthday payments of $40,000 beginning on your 50 th birthday and continuing forever (with payments
You wish to retire at age 50 and receive annual birthday payments of $40,000 beginning on your 50th birthday and continuing forever (with payments going to your heirs after your death). To this end, you save in an account earning a 4% annual effective interest rate. How much money will you need to have saved by age 50, at the instant prior to your 50th birthday payment?
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