I am having trouble remembering how to calculate this question using my financial calculator. Could you please refresh my memory on how to properly input this info. Do I need to use bgn mode?
The question reads: Goal 2- 99% chance of being able to maintain current annual expenditures of $100,000 for the next 10yrs, assuming annual inflation rate of 3% from year 2 onward. (2.2% - the correct discount rate for the example)
I can find the right answer when I do out the math out as shown below, but otherwise I can’t seem to calculate the right answer using my N, I/y, Pv, pmt, fv keys.
The math is as follows:
100,000/(1.022)^1 + 100,000(1.03)^1/(1.022)^2 + 100,000(1.03)^2/(1.022)^3 … 100,000(1.03)^9/(1.022)^10
Please help if you can, thank you!