In: Finance
Marcy Gross wants to save money to meet three objectives. First, she would like to be able to retire 30 years from now with retirement income of $22,000 per month for 25 years, with the first payment received 30 years and 1 month from now. Second, she would like to purchase a cabin in Jersey Coast in 20 years at an estimated cost of $977,000. Third, after she passes on at the end of the 25 years of withdrawals, he would like to leave an inheritance of $550,000 to her daughter Rebecca. Marcy can afford to save $1,700 per month for the next 20 years. If Marcy can earn a 10 percent EAR before she retires and a 7 percent EAR after she retires, how much will she have to save each month in Years 21 through 30?