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What change should the carter make to planned

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The Carters are hoping to retire in five years and are saving monthly toward that goal. Their established goal was to have $400,000 by making payments of $5,587.15 at the end of each month. They assumed they could earn a 7% aftertax rate of return but, after talking with their financial advisor, realize that 6% is a more realistic return expectation.

Based on this new assumption, what change should the Carter's make to their planned monthly savings to still reach their goal in five years?

Select one:

a. Increase monthly payments by $55.87

b. Increase monthly payments by $86.47

c. Increase monthly payments by $145.97

d. Increase monthly payments by $279.35

e. Increase monthly payments by $326.06

Please show your work. This is a typical TVM calculator problem.

Reference no: EM131947596

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