You expect to retire in 20 years and have estimated that you will need $60,000 per...

Question

Question

You expect to retire in 20 years and have estimated that you will need $60,000 per year in today's dollars, how much will you need in the first year of retirement assuming a 3.25 percent average inflation rate?

business finance

Answer 1

Answer #1

Inflation Rate = 3.25%

Time Period = 20 years

Amount today = $60,000

Amount at Retirement = 60000(1 + 0.0325)²⁰

Amount = $113,750.28

Answer 2

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