You would like to retire in 21 years

Finance Oct 06, 2020

You would like to retire in 21 years. The expected rate of inflation is 01.00% per year. You currently have a standard of living that requires $7652 of monthly expenses. Assuming you want to maintain the same standard of living in retirement, what are your monthly expenses expected to be in the first year of retirement?

Expert Solution

Computation of Monthly Expenses in First of Retirement:

Monthly Expenses in First of Retirement = $7,652*(1+1%)^21 = $9,430.26

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