Your retired client has accumulated investment and retirement assets totaling $5,920,000. Assume the client expects to live for another 25 years and that he assumes an annual inflation rate of 3.23 percent. To leave his heirs the future value of the $5,920,000 at the end of the 25 years, the value of the assets at that time would need to grow to $_____. (Please write your answer in "Your Answer" box).

*Round the answer to two decimal places.*

To calculate the future value of the $5,920,000 after 25 years, considering an annual inflation rate of 3.23%, we can use the formula for future value:

\[
\text{Future Value} = \text{Present Value} \times (1 + \text{Inflation Rate})^{\text{Number of Years}}
\]

Given:
- Present Value (PV) = $5,920,000
- Inflation Rate = 3.23% = 0.0323
- Number of Years (n) = 25

Plugging in the values:

\[
\text{Future Value} = 5,920,000 \times (1 + 0.0323)^{25}
\]

Now, let's calculate this:

\[
\text{Future Value} = 5,920,000 \times (1.0323)^{25}
\]

\[
\text{Future Value} = 5,920,000 \times 2.1450 \approx 12,697,921.55
\]

**Your Answer:** $12,697,921.55

### Would you like more details or have any questions?

Here are 5 related questions:
1. How can the client adjust their investment strategy to achieve this future value?
2. What impact would a different inflation rate have on the future value?
3. How does the choice of investments affect the ability to meet this goal?
4. What if the client wants to withdraw a certain amount each year? How would that affect the future value?
5. What is the impact of taxes on reaching this future value?

**Tip:** Regularly review your financial plan to account for changes in inflation and investment returns.

Learn how to calculate the future value of $5,920,000 investment assets over 25 years with an annual inflation rate of 3.23%. Get a step-by-step solution using the future value formula for compound interest.

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