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 $28,000 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 10 years at an estimated cost of $337,000. Third, after she passes on at the end of the 25 years of withdrawals, he would like to leave an inheritance of $600,000 to her daughter Rebecca. Marcy can afford to save $2,000 per month for the next 10 years. If Marcy can earn a 11 percent EAR before she retires and a 9 percent EAR after she retires, how much will she have to save each month in Years 11 through 30? Multiple Choice $3,564.19
$3,424.42
$3,494.30
$4,086.14
$4,229.59