Assuming an inflation rate of compounded monthly

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Reference no: EM131886653

In order to save for retirement, a 25-year old begins depositing 250 at the beginning of each month, beginning on the 25th birthday. Deposits continue until age 65, with the last deposit one month before the 65th birthday.

Assuming the nominal rate of 9% compounded monthly, and assuming an inflation rate of 4% compounded monthly, the accumulated value on the 65th birthday using the real rate of return is.

Reference no: EM131886653

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