Annual tax income desired before taxes at retirement

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Reference no: EM131968539

Stephan and Josie want to retire are planning for retirement. They desire an annual income that is equal to 80% of their current after tax income and are currently receiving an after tax income of $83,300. The tax rate at retirement will be 25% and the annual inflation rate is 3%. How much after tax income will they have to receive at retirement to be equivalent to 80% of their current after tax income? What is the equivalent annual tax income desired before taxes at retirement?

Reference no: EM131968539

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