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A worker plans to retire in 32 years. He hopes to receive $68,000 per year in retirement income. If inflation is forecast at 3.1% per
A worker plans to retire in 32 years. He hopes to receive $68,000 per year in retirement income. If inflation is forecast at 3.1% per year, what annual income should he plan to receive in the first year of retirement in order to maintain the purchasing power on $68,000?
Use a FV formula or a BAII+ Calculator to solve. Treat the $68,000 in today's amount as the Present Value amount. Treat the 3.1% inflation as the annual compounded rate.
$68,000
$76,159
$98,398
$180,628
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