Question
Your client, Robert, is concerned as to how inflation will affect his retirement income. Robert believes that inflation will average 4.5% for the first five
Your client, Robert, is concerned as to how inflation will affect his retirement income. Robert believes that inflation will average 4.5% for the first five years, 3% for the next five years, and 4% for the years remaining until he retires. What then is the correct amount, rounded to the nearest dollar, of his first-year retirement income when he retires fifteen years from today, presuming he will maintain his current standard of living which generated $50,000 in available after-tax cash this year?
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A) | $87,882.86 |
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B) | $128,043 |
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C) | $130,088 |
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D) | $150,272 |
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