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Business, 22.04.2020 03:00 monsterwins5001

"Steven, age 43, earns $80,000 annually; and his wage replacement ratio has been determined to be 80%. He expects inflation will average 3% for his entire life expectancy. He expects to work until 68, and live until 90. He anticipates an 8% return on his investments. Additionally, Social Security Administration has notified him that his annual retirement benefit, in today s dollars will be $26,000. Using the purchasing power preservation model, calculate how much capital Steven needs, in order to retire at 68. "

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"Steven, age 43, earns $80,000 annually; and his wage replacement ratio has been determined to be 80...
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