Question: You have a $ 2 , 0 0 0 , 0 0 0 balance in your 4 0 1 K account 4 0 years from

You have a $2,000,000 balance in your 401K account 40 years from now. The initial draw is 4% of the balance, equaling $80,000. What is the present value of the $80,000 initial draw assuming a 3.50% rate of inflation?

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