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Retirement Saving
An employee builds up $700,000 over his 40-year working life in a personal account that he plans to use in retirement.
a. Assuming an interest rate of 3.30% per year, how much can he take each month in retirement if he retires on his 60th birthday and wants to be funded through age 85?
b. What amount of monthly saving would have been required to amass $700,000 in a personal account if the interest rate were 3.50%?
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