Question
Suppose you think if you were to retire right now you would have needed $50,000 each year to supplement your social security and maintain your
Suppose you think if you were to retire right now you would have needed $50,000 each year to supplement your social security and maintain your desired lifestyle. But because there is on average 3% annual inflation, when you retire in 30 years from now you need more than $50,000 per year to maintain the lifestyle you like.
How much will be equivalent to $50,000 at the retirement time when adjusted for inflation?
How much will be the face value of the bond that yields the equivalent of $50,000, found in #4 of Part B in coupon payment?
How much annual payment in the retirement account is needed to accumulate the amount needed to purchase the bond when retiring?
What is the purchase power of the amount that will be received by your inheritors, measured in the current value of $ at the time of opening the retirement account?
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