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?

Explanation: The calculation is as follows: (1.08)⁵ x 100000 = $146,933