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Retirement Planning
Easy Liefer plans to retire at the age of 65 and believes he will live to be 90. Easy wants to receive an annual retirement payment of $50,000 at the beginning of each year. He set up a retirement account that is estimated to earn 6 percent annually.
a)How much money must Easy have in the account when he reaches 65 years old?
b)Easy is currently 29 years of age, how much must he invest in the account at the end of each year for the next 36 years to have this amount in his account at age 65?
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