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9. Joe's starting salary as a mechanical engineer is around $80,000. Joe is planning to place a total of 10% of his salary each year in the mutual fund. Joe expects a 5% salary increase each year for the next 30 years of employment. If the mutual fund will average 7% annual return over the course of his career, what can Joe expect at retirement? 8 Click the icon to view the interest factors for discrete compounding when i= 7% per year. The amount Joe can expect at retirement is $ (Round to the nearest dollar.)

9. Joe's starting salary as a mechanical engineer is around $80,000. Joe is planning to place a total of 10% of his salary each year in the mutual fund. Joe expects a 5% salary increase each year for the next 30 years of employment. If the mutual fund will average 7% annual return over the course of his career, what can Joe expect at retirement? 8 Click the icon to view the interest factors for discrete compounding when i= 7% per year. The amount Joe can expect at retirement is $ (Round to the nearest dollar.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 44P
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9.

TUINUL 21 4.1406 0.2415 44.8652 0.0223 10.8355 0.0923 22 4.4304 0.2257 49.0057 0.0204 11.0612 0.0904 23 4.7405 0.2109 53.4361 0.0187 11.2722 0.0887 24 5.0724 0.1971 58.1767 0.0172 11.4693 0.0872 25 5.4274 0.1842 63.2490 0.0158 11.6536 0.0858 26 5.8074 0.1722 68.6765 0.0146 11.8258 0.0846 27 6.2139 0.1609 74.4838 0.0134 11.9867 0.0834 28 6.6488 0.1504 80.6977 0.0124 12.1371 0.0824 29 7.1143 0.1406 87.3465 0.0114 12.2777 0.0814 30 7.6123 0.1314 94.4608 0.0106 12.4090 0.0806 31 8.1451 0.1228 102.0730 0.0098 12.5318 0.0798 32 8.7153 0.1147 110.2182 0.0091 12.6466 0.0791 33 9.3253 0.1072 118.9334 0.0084 12.7538 0.0784 34 9.9781 0.1002 128.2588 0.0078 12.8540 0.0778 35 10.6766 0.0937 138.2369 0.0072 12.9477 0.0772
Transcribed Image Text:TUINUL 21 4.1406 0.2415 44.8652 0.0223 10.8355 0.0923 22 4.4304 0.2257 49.0057 0.0204 11.0612 0.0904 23 4.7405 0.2109 53.4361 0.0187 11.2722 0.0887 24 5.0724 0.1971 58.1767 0.0172 11.4693 0.0872 25 5.4274 0.1842 63.2490 0.0158 11.6536 0.0858 26 5.8074 0.1722 68.6765 0.0146 11.8258 0.0846 27 6.2139 0.1609 74.4838 0.0134 11.9867 0.0834 28 6.6488 0.1504 80.6977 0.0124 12.1371 0.0824 29 7.1143 0.1406 87.3465 0.0114 12.2777 0.0814 30 7.6123 0.1314 94.4608 0.0106 12.4090 0.0806 31 8.1451 0.1228 102.0730 0.0098 12.5318 0.0798 32 8.7153 0.1147 110.2182 0.0091 12.6466 0.0791 33 9.3253 0.1072 118.9334 0.0084 12.7538 0.0784 34 9.9781 0.1002 128.2588 0.0078 12.8540 0.0778 35 10.6766 0.0937 138.2369 0.0072 12.9477 0.0772
9. Joe's starting salary as a mechanical engineer is around $80,000. Joe is planning to place a total of 10% of his salary each year in the mutual fund. Joe expects a 5% salary increase each year for the next 30 years of employment. If the mutual fund will average 7% annual return over the course of his career, what can Joe expect at retirement? 8 Click the icon to view the interest factors for discrete compounding when i= 7% per year. The amount Joe can expect at retirement is $ (Round to the nearest dollar.) 8: More Info Single Payment Equal Payment Series Compound Present Compound Sinking Present Capital Recovery Amount Worth Amount Fund Worth Factor Factor Factor Factor Factor Factor (F/P, i, N) (P/F, i, N) (F/A, i, N) (A/F, i, N) (PIA, i, N) (A/P, i, N) 1 1.0700 0,9346 1.0000 1.0000 0.9346 1.0700 2 1.1449 0.8734 2.0700 0.4831 1.8080 0.5531 3 1.2250 0.8163 3.2149 0.3111 2.6243 0.3811 4 1.3108 0.7629 4.4399 0.2252 3.3872 0.2952 1.4026 0.7130 5.7507 0.1739 4.1002 0.2439 6 1.5007 0.6663 7.1533 0.1398 4.7665 0.2098 7 1.6058 0.6227 8.6540 0.1156 5.3893 0.1856 8 1.7182 0.5820 10.2598 0.0975 5.9713 0.1675 9 1.8385 0.5439 11.9780 0.0835 6.5152 0.1535 10 1.9672 0.5083 13.8164 0.0724 7.0236 0.1424 11 2.1049 0.4751 15.7836 0.0634 7.4987 0.1334 12 2.2522 0.4440 17.8885 0.0559 7.9427 0.1259 13 2.4098 0.4150 20.1406 0.0497 8.3577 0.1197 14 2.5785 0.3878 22.5505 0.0443 8.7455 0.1143 15 2.7590 0.3624 25.1290 0.0398 9.1079 0.1098 16 2.9522 0.3387 27.8881 0.0359 9.4466 0.1059 17 3.1588 0.3166 30.8402 0.0324 9.7632 0.1024 18 3.3799 0.2959 33.9990 0.0294 10.0591 0.0994 19 3.6165 0.2765 37.3790 0.0268 10.3356 0.0968 20 3 R697 n 2584 40 9955 0 0244 10 5940 n na44
Transcribed Image Text:9. Joe's starting salary as a mechanical engineer is around $80,000. Joe is planning to place a total of 10% of his salary each year in the mutual fund. Joe expects a 5% salary increase each year for the next 30 years of employment. If the mutual fund will average 7% annual return over the course of his career, what can Joe expect at retirement? 8 Click the icon to view the interest factors for discrete compounding when i= 7% per year. The amount Joe can expect at retirement is $ (Round to the nearest dollar.) 8: More Info Single Payment Equal Payment Series Compound Present Compound Sinking Present Capital Recovery Amount Worth Amount Fund Worth Factor Factor Factor Factor Factor Factor (F/P, i, N) (P/F, i, N) (F/A, i, N) (A/F, i, N) (PIA, i, N) (A/P, i, N) 1 1.0700 0,9346 1.0000 1.0000 0.9346 1.0700 2 1.1449 0.8734 2.0700 0.4831 1.8080 0.5531 3 1.2250 0.8163 3.2149 0.3111 2.6243 0.3811 4 1.3108 0.7629 4.4399 0.2252 3.3872 0.2952 1.4026 0.7130 5.7507 0.1739 4.1002 0.2439 6 1.5007 0.6663 7.1533 0.1398 4.7665 0.2098 7 1.6058 0.6227 8.6540 0.1156 5.3893 0.1856 8 1.7182 0.5820 10.2598 0.0975 5.9713 0.1675 9 1.8385 0.5439 11.9780 0.0835 6.5152 0.1535 10 1.9672 0.5083 13.8164 0.0724 7.0236 0.1424 11 2.1049 0.4751 15.7836 0.0634 7.4987 0.1334 12 2.2522 0.4440 17.8885 0.0559 7.9427 0.1259 13 2.4098 0.4150 20.1406 0.0497 8.3577 0.1197 14 2.5785 0.3878 22.5505 0.0443 8.7455 0.1143 15 2.7590 0.3624 25.1290 0.0398 9.1079 0.1098 16 2.9522 0.3387 27.8881 0.0359 9.4466 0.1059 17 3.1588 0.3166 30.8402 0.0324 9.7632 0.1024 18 3.3799 0.2959 33.9990 0.0294 10.0591 0.0994 19 3.6165 0.2765 37.3790 0.0268 10.3356 0.0968 20 3 R697 n 2584 40 9955 0 0244 10 5940 n na44
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