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Mike currently earns $150,000/year and believes she will need to replace 80% of her income in retirement to

support her living expenses. He expects to receive social security income of $20,000/year in retirement. Mike wants to retire in 25 years and tells you to use a retirement period of 30 years. Inflation is expected to be 2% per year and investment returns assumed to be 7% per year. If Mike has no retirement savings now, how much does she need to save each year until retirement to meet his goal? Show your work.

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Answer She need to save each... View the full answer

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