Suppose that an insurance agent offers you a policy that will provide you with a yearly income of $70,000 in 30 years. What is the comparable salary today, assuming an inflation rate of 5% compounded annually? (Round your answer to the nearest cent.
+118723 Do you mean an yearly income of $70,000 for ever? (A perpetuity?)
Is this your question?
How much will I need to save every year in order to retire with a perpetuity of $70000 paid at the end of each year into perpetuity? Assume the money earns 5% per annum .
If this is your question then I will answer it. Let me know. 
+118723 Do you mean an yearly income of $70,000 for ever? (A perpetuity?)
Is this your question?
How much will I need to save every year in order to retire with a perpetuity of $70000 paid at the end of each year into perpetuity? Assume the money earns 5% per annum .
If this is your question then I will answer it. Let me know.
