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Alexa would like to retire in 40 years. She will need $10,000 at the beginning of each year in today's dollars in retirement. She assumes
Alexa would like to retire in 40 years. She will need $10,000 at the beginning of each year in today's dollars in retirement. She assumes that she will live for 30 years in retirement, inflation will average 3 percent per year, and she can earn 5 percent each year on her invested assets. Based on this information, and assuming she has no current savings and does not wish to leave any money to anyone when she dies, how much will she need to have saved by the beginning of retirement in order to satisfy her retirement spending goal? 1) Less than $200,000 2) Between $200,000 and $600,000 3) Between $600,001 and $1,000,000 4) Greater than $1,000,000
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