Question: Rick wants to know how much it will cost him to live 26 years from now when he retires. He is basing his analysis on

Rick wants to know how much it will cost him to live 26 years from now when he retires. He is basing his analysis on his current cost of living of $70,000 per year. Rick anticipates that he will not change anything once he retires. He expects to spend money on the same things he does now. He expects inflation to be 3.1% annually between now and his retirement date.

How much will Rick need 26 years from now to enable him to have the same standard of living he enjoys with $70,000 today?

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