Question # 3: Suppose that your retirement benefits during your first year of retirement are $50000. Assume that this am

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Question 3 Suppose That Your Retirement Benefits During Your First Year Of Retirement Are 50000 Assume That This Am 1 (21.18 KiB) Viewed 11 times

Question # 3: Suppose that your retirement benefits during your first year of retirement are $50000. Assume that this amount is just enough to meet your cost of living during the first year. However, your cost of living is expected to increase at an annual rate of 5% due to inflation. Suppose you do not expect to receive any cost-of-living adjustment in your retirement pension. Then some of your future cost of living has to come from savings other than retirement pension. If your savings account carns 7% interest a year, how much should you set aside in order to meet this future increase in the cost of living over 25 years?