A worker plans to retire in 30 years. He hopes to receive $65,000 per year in retirement income. If inflation is forecast at 2.5% per year, what annual income should he plan to receive in the first year of retirement in order to maintain the purchasing power on $65,000?
A. $65,000
B. $76,159
C. $98,398
D. $136,342
D. $136,342
Calculator entries are N = 30, I/Y = 2.5, PV = 65,000, PMT = 0, CPT FV --> 136,341.89.
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