Deposit an equal amount of money every month

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You would like to retire 30 years from now. You will deposit an equal amount of money every month for the next 20 years into a retirement account that pays 6% nominal interest compounded monthly. You have decided that the total amount you will need in the retirement account 30 years from now to support you throughout retirement is $700,000 of purchasing power in today’s dollars. How much would you need to deposit each month in actual dollars to achieve your goal if the general inflation rate is 4%?

Reference no: EM131007397

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