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Saving for a Retirement Plan

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?

Setting this problem up correctly is critical!

Solution Summary

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

$2.19