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Saving for a Retirement Plan

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A relative of yours is going to retire in 20 years. At that point, they will want to have enough savings to receive $40,000 per year for 25 years. If they can get a guaranteed interest rate of 7%, how much will they have to set aside each year to meet their goal?

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Solution Summary

Solution discusses the amount to be set aside each year to meet their goal

$2.19