What must his minimum annual savings be from years

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Elimelech wants to save money to meet two objectives. First, he would like to be able to retire 20 years from now and have a retirement income of $30,000 per year for at least 30 years. The first retirement check will be received  when Elimelech is 51 and his last check will be when he is 80. Second, he would like to purchase a speed boat 5 years from now, at an estimated cost of $40,000. He can afford to save only $12,000 per year for the first 10 years. Elimelech expects to earn 8% per year on average from investments over the next 50 yearss. What must his minimum annual savings be from years 11 through 20 to meet his objectives?  

Reference no: EM131873258

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