Todd has accumulated assets of $550,000 that he wishes to dedicate to his retirement. Inflation is anticipated to average 2% over the next 20 years. He plans on retiring in 15 years. What would be the value of his fund at retirement if Todd can average a 5% after-tax rate of return on his accumulated assets? (Round to the nearest dollar)

Respuesta :

Answer:

Explanation:

Present Value (P) =550,000

Future Value (S) = ?

Interest rate (i)=5%

Period (n)=15years

S=P(1+i)^n

S=550,000(1+.05)^15

S=1,143,410