Question
Your 68 year old mother plans to retire in 2 yars and she expects to live independently for 3 years. She wants a retirement income
Your 68 year old mother plans to retire in 2 yars and she expects to live independently for 3 years. She wants a retirement income that has, in the first year the same purchasing power as 60,000 has today. However her retirement income will be of a fixed amount so her real income will decline over time. Her retirement income will start the day she retires ( 2 years from today), and she will receive a totla of 3 retirements payments. In flation is expected to be constant at 6%. Your mother has $100000 in savings now an she can earn 9% on savings now and in the future. How much must shes save each year starting today to meet her retirement goals?
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