Your Parents will retire 16 years from now. By then, in dollars today they need a lump sum of $1,500,000. The annual rate of inflation of the next 16 years is 4% compounded annually. There is an investment opportunity with a yield of 9% annually compounded monthly. How much should they deposit every month for the next sixteen years after tax to achieve this retirement goal when the tax rate is 20%?

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Step 1 Lumpsum amount required at the time of retirement 280947187 Calcul... View the full answer