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What is the total amount of wealth

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Reference no: EM132428749

Problem: Your goal is to retire 30 years from now; you need $2M in today's dollars to do that. Annual inflation rate is 2%; rate of return on retirement savings will be 6%; constant.

Required:

Question 1: What is the total amount of wealth you need in 30 years? How much should you set aside year end to meet needs assuming you'll save 4% more each year (no taxes)?

Question 2: What is the PV of the amount you will need to retire?

Reference no: EM132428749

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