Assume you save $6000 each year starting this year until your planned retirement 40 years from now.
Question:
Assume you save $6000 each year starting this year until your planned retirement 40 years from now. The buying power of the money in terms of today’s dollars at the market interest rate of 10% per year and inflation rate of 5% per year is closest to:
(a) $377,200
(b) $605,350
(c) $1,318,150
(d) $2,655,550
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