Question

Assume the Josephs would like to be able to spend $8,000 per month (in today’s dollars)...

Assume the Josephs would like to be able to spend $8,000 per month (in today’s dollars) when they retire in 7 years. They believe they can earn a 7% annual return on any invested funds and inflation will be 4% annually over this same timeframe. What future monthly income will the Josephs need to meet their 1st-year retirement expenditures? (Round the answer to the nearest dollar.)

$11,920

$10,527

$12,846

$9,788

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