A client is concerned about the impact that inflation will


A client is concerned about the impact that inflation will have on her retirement income. The client currently earns $40,000 per year. Assuming that inflation averages 2.25% for the first five years, 2.5% for the next five years and 3.25% for the remaining time until retirement. What amount must her first-year retirement income be when she retires 13 years from now if she wants it to equal the purchasing power of her current earnings?

$54,998

$55,675

$53,800

$52,892

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Financial Management: A client is concerned about the impact that inflation will
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