Question: A couple will retire in 50 years; they plan to spend about $22,000 a year in retirement, which should last about 25 years. They believe

A couple will retire in 50 years; they plan to spend about $22,000 a year in retirement, which should last about 25 years. They believe that they can earn 8% interest on retirement savings. a) If they make annual payments into a savings plan, how much will they need to save each year? Assume first payment comes year 1. b) How will part (a) change if they realize in 20 years they will need to spend $52,000 on their Child's college education?

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