Question

Question 1 1 pts Let's say your clients currently spend $80,000 (in today's dollars), and they want to spend 90% of that in retirement. If your clients are currently 44 years old and want to retire when they are 65, how much will their first year of retirement expenses be (in future dollars)? Assume that general inflation averages 2.6% per year, and based on their risk tolerance, your clients can earn an annual rate of return of 6.0% on their investments.

please just reply with the answer to the question. i do not want to see any number or equations, just the number answer to the question.

Answer 1

Answer =

123,431.80

Explanation has to be provided as per rules as below

Years from now= 65-44 = 21

First year of retirement expenses = Current expenses*(1+Inflation)^n* 90%

= (80000*(1+2.6%)^21)*90%=

$ 123,431.80