Business

20 April, 02:18

Gilbert needs $600,000 (in today's dollars) when he retires in 20 years to open a lakefront bed and breakfast. He has saved $150,000 (current balance) toward this goal. Gilbert anticipates the annual inflation rate over the 20-year period will be 4%, and that he can earn an after-tax return of 8% on any invested funds. How much does Gilbert need to save at the start of the 1st year if he makes inflation-adjusted deposits at the beginning of each year

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