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Your parents are planning to retire in Boulder, Colorado, in 25 years. Currently, the typical house that pleases your parents costs $200,000, but they expect
Your parents are planning to retire in Boulder, Colorado, in 25 years. Currently, the typical house that pleases your parents costs $200,000, but they expect inflation to increase the price of the house at a rate of 5% per year over the next 25 years. In order to buy a house upon retirement, what must they save each year in equal annual end-of-year deposits if they can earn 10% annually? Hint: You first need to calculate how much the house will cost in 25 years.
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