A worker plans to retire in 20 years. He needs $20,000 per year in retirement income in today's dollars. If inflation is forecast at 3.5% per year, what annual income should he plan to receive in the first year of retirement in order to maintain the purchasing power on $20,000?

Answer rating: 100% (QA)

To maintain the purchasing power of 20000 in 20 years the worker needs to calculate the future value ... View the full answer