Q.52 Amelia Stone plans to retire next year and is considering an investment that would help to ensure her future financial stability. On average, Stone spends $70,000 annually. After retirement, she plans to relocate to the countryside, a move that should cut her living expenses by 20%. She was approached by her broker with the idea to start investing in perpetuities. Specifically, he suggested a perpetuity that would yield 7% per year. Assuming the mentioned reduction of costs, how much should Stone invest in the perpetuities to meet her new spending needs?