$4$

Problem $3-8$ Calculating the Effect of Inflation $[$LO$3-3]$

Bill and Sally Kaplan have an annual spending plan that amounts to $$104,000.$ If inflation is $4$ percent a year for the next

$3$

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References three years, what amount will the Kaplans need for their living expenses three years from now? $($Exhibit $1-$A$,$ Exhibit $1-$B$,$

Note: Use appropriate factor$($s$)$ from the tables provided. Round time value factor to $3$ decimal places and final answer Exhibit $1-$C$,$ Exhibit $1-$D$)$ to $2$ decimal places.

Living expenses