Today is your 35th birthday, and starting next year and on every birthday up to and including your 65th birthday you will invest $43,054.18 in real dollars to meet your retirement goals. Assume 7% is the fair nominal rate and Inflation is 3% per year (the real rate is 3.89%).
The annual payments calculated in real dollars is $43,054.18. Since your first annual investment will be made next year, what is the nominal (actual) amount you need to invest next year to account for inflation?