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A man is planning to retire in 20 years. Money can be deposited at 8%, compounded monthly. It is estimated that the future general inflation rate will be 3% compounded annually. What deposit must be made each month until the man retires so that he can make annual withdrawals of $20000 in terms of actual dollars over the 15 years following his retirement?

(Assume that his first withdrawal occurs at the end of the first year after his retirement)

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91239686

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