Nancy Arbuckle has decided that she only needs $42000 per year to live a comfortable life in todays dollars. In talking to her financial advisor, she forecasts 3% inflation in the long run. Nancy wants to retire 20 years from now, and she has calculated her first-year retirement needs will be about $78000 in future dollars. Is she correct? Why?

A. Yes, adjusting for inflation, $42000 will be worth approximately $78000 in 20 years.

B. No, adjusting for inflation, $42000 will be worth approximately $75857 in 20 years.

C. No, adjusting for inflation, $42000 will be worth approximately $42630 in 20 years.

D. No, adjusting for inflation, $42000 will be worth approximately $44520 in 20 years.