Question: A client is concerned about the impact that inflation will have on her retirement income. The client currently earns $40,000 per year. Assuming that inflation
A client is concerned about the impact that inflation will have on her retirement income. The client currently earns $40,000 per year. Assuming that inflation averages 2.25% for the first five years, 2.5% for the next five years and 3.25% for the remaining time until retirement.What amount must her first-year retirement income be when she retires 13 years from now if she wants it to equal the purchasing power of her current earnings?
| $54,998 | ||
| $55,675 | ||
| $53,800 | ||
| $52,892 |
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