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Suppose that you wish to save enough to fund $4,500 per month (in today's purchasing power)...

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Finance

Suppose that you wish to save enough to fund $4,500 per month(in today's purchasing power) for 30 years of retirement. The fundyou invest in during your working (or saving) years is expected toearn interest at 6% AR. At retirement, you will move yourretirement funds into a less risky investment earning 4% AR. If youare 35 years from retirement, find the level of monthly savings (incurrent dollars) that will be required.

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Answer & Explanation Solved by verified expert
4.1 Ratings (662 Votes)
Assuming Annual inflation 2Monthly amount required on retirementactual dollar45001002359000Inflation adjusted return    See Answer
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