A worker plans to retire in 32 years. He hopes to receive $68,000 per year in retirement income. If inflation is forecast at 3.1% per year, what annual income should he plan to receive in the first year of retirement in order to maintain the purchasing power on $68,000?

Question

Quizplus · Accepted Answer

FV = $68,000 × (1+ 0.031)³² = $180,628 Calculator entries are N = 32, I/Y = 3.1, PV = 68,000, PMT = 0, CPT FV → 180,628.

A Worker Plans to Retire in 32 Years