Question
1. Taylor is 30 years old and earns $90,000 per year. She is content with her life and believes that her cost of living will
1. Taylor is 30 years old and earns $90,000 per year. She is content with her life and believes that her cost of living will not go up during her working years. Still, she is concerned about losing purchasing power due to general inflation in the economy and wants to know what an equivalent salary would be in 35 years, assuming 3.0% inflation per year.
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2.
Flo needs $100,000 per year to live on when she retires at age 65. She expects to live until shes 100 years old. If her retirement assets are earning an average of 9.0% per year (throughout retirement), how much would Grace need to have saved up by age 65 to ensure she has a sufficient amount of assets to safely retire (assuming no inflation)?
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