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Abdullah's current salary is $80,000 per year, and she is planning to retire 25 years from now. He anticipates that his annual salary will increase by 300 each year. He plans to deposit 6% of his yearly salary into a retirement fund that earns 8% interest compounded monthly. What will be the amount accumulated at the time of his retirement? Also draw the cash flow diagram?

Abdullah's current salary is $80,000 per year, and she is planning to retire 25 years from now. He anticipates that his annual salary will increase by 300 each year. He plans to deposit 6% of his yearly salary into a retirement fund that earns 8% interest compounded monthly. What will be the amount accumulated at the time of his retirement? Also draw the cash flow diagram?

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 8E
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Abdullah's current salary is $80,000 per year, and she is planning to retire 25 years from now. He anticipates that his annual salary will increase by 300 each year. He plans to deposit 6% of his yearly salary into a retirement fund that earns 8% interest compounded monthly. What will be the amount accumulated at the time of his retirement?

Also draw the cash flow diagram? 

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