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sergey [27]
3 years ago
14

You would like to retire in 30 years. The expected rate of inflation is 2% per year. You currently have a standard of living tha

t requires $7940 of monthly expenses. Assuming you want to maintain the same standard of living in retirement, what are your monthly expenses expected to be the first year of retirement
Business
1 answer:
Zepler [3.9K]3 years ago
3 0

Answer:

You would need $14,382.21 to maintain your purchasing power.

Explanation:

Giving the following information:

You would like to retire in 30 years. The expected rate of inflation is 2% per year. You currently have a standard of living that requires $7940 of monthly expenses.

<u>The inflation rate has the same intrinsic behavior as an investment with a compounded interest rate.</u>

<u></u>

We need to use the following formula:

FV= PV*(1+i)^n

FV= 7,940*(1.02^30)

FV= $14,382.21

You would need $14,382.21 to maintain your purchasing power.

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1. At what level does the supervisor fit in the organizational pyramid? Describe a major trend that is changing the role of the
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6 0
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