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