Janet Arbuckle Has Decided That She Only Needs $30,000 Per

Janet Arbuckle has decided that she only needs $30,000 per year to live a comfortable life in today's dollars. In talking to her financial advisor, she forecasts 3% inflation in the long run. Janet wants to retire 20 years from now, and she has calculated her first-year retirement needs will be about $72,000 in future dollars. Is she correct? Why?

A) Yes, adjusting for inflation, $30,000 will be worth approximately $72,000 in 20 years.
B) No, adjusting for inflation, $30,000 will be worth approximately $39,000 in 20 years.
C) No, adjusting for inflation, $30,000 will be worth approximately $31,800 in 20 years
D) No, adjusting for inflation, $30,000 will be worth approximately $54,000 in 20 years.