How much should you set aside in order to meet future

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Suppose that your retirement benefits during your first year of retirement are $70,000 per year which is just enough to meet your cost of living during the first year. However, your cost of living is expected to increase at an annual rate of 6% due to inflation. If there is no cost-of-living adjustment in your retirement pension, then some of your future living cost has to come from savings other than retirement pension.
If your saving account earns 10% interest a year, how much should you set aside in order to meet this future increase in the cost of living for 30 years?

Reference no: EM13208933

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