Question

) if you expect to retire in 30 years, are currently comfortable living on $50,000 per year and expect inflation to average 3% over the next 30 years, what amount of annual income will you need to live at the same comfort level in 30 years?

Answer 1

Use the formula of compound interest which is
A= P (1 + r)^n
A future value (amount of annual income) ?
P present value 50000
R rate of inflation 0.03
N time 30 years

A=50,000 x (1 +.03)^30
A= 121,363.12

answer= 121,363.12