How much must he save

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Question - Assume that your father is now 40 years old, that he plans to retire in 20 years, and that he expects to live for 25 years after he retires, that is, until he is 85. He wants a fixed retirement income of $75,000 (per year). His retirement income will begin the day he retires, 20 years from today, and he will then get 24 additional annual payments. He currently has $200,000 saved up and he expects to earn a return on his savings of 7 percent per year, annual compounding. How much must he save during each of the next 20 years (with deposits being made at the end of each year) to meet his retirement goal?

Reference no: EM132853397

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