Find what the client investments would have to earn

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Problem 1: Your retired client has accumulated investment and retirement assets totaling $8,801,000. Assume the client expects to live for another 26 years and that he assumes an annual inflation rate of 4.7 percent. To leave his heirs the future value of the $8,801,000 at the end of the 26 years, and maintain an inflation-adjusted lifestyle of $263,000 a year for all 26 years, the client's investments would have to earn an average of ______ percent a year for the entire 26 years.

Reference no: EM132985577

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