Computation of future annual receipts considering inflation

Reference no: EM139641

Computation of future annual receipts, considering inflation rate.

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?

Reference no: EM139641

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