An engineer will deposit 15% of her salary each year into a retirement fund. If her current annual salary is $80000 and she expects that it will increase by 5% (g) each year, what will be the present worth of the fund after 35 years if it earns 5% interest? (Answer: $400,000)
An engineer will deposit 15% of her salary each year into a retirement fund. If her current annual salary is $80000 and she expects that it will increase by 5% (g) each year, what will be the present worth of the fund after 35 years if it earns 5% interest? (Answer: $400,000)
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 52P
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An engineer will deposit 15% of her salary each year into a retirement fund. If her current annual salary is $80000 and she expects that it will increase by 5% (g) each year, what will be the present worth of the fund after 35 years if it earns 5% interest? (Answer: $400,000)
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