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11 February, 11:53

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)

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  1. 11 February, 15:44
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    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
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