CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

A client tells you that he currently earns $100,000 per year and is comfortable with his lifestyle at that income level. He says he is planning on retiring in 5 years. If inflation averages 8% over the next 5 years, approximately what income level will this client require in the year of his retirement to maintain his current lifestyle?
A. $147,000
B. $122,000
C. $140,000
Explanation: The calculation is as follows: (1.08)5 x 100000 = $146,933

User Contributed Comments 1

User Comment
bidisha N=5
I= 8
Pv= 100,000
Pmt= 0
Compute fv
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