Claire just celebrated her 25 th birthday today (t = 0). Currently, Claire has no money saved
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Question:
Claire just celebrated her 25th birthday today (t = 0). Currently, Claire has no money saved (in other words, her savings = 0).Claire realizes that she needs to begin saving for retirement. She plans to deposit into an investment account $4,000 annually at the end of each of the next 40 years. The first deposit will occur one year from now when she turns 26 (t = 1), and the final deposit will be made on her 65th birthday (t = 40).Claire plans to retire when she makes her final deposit on her 65th birthday. She expects to earn an annual 9% rate of return on her investment. How much will Claire have accumulated in her account when she retires on her 65th birthday?
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