Emily Dorsey's current salary is $79,000 per year, and she is planning to retire 17 years from now. She anticipates that her annual salary will increase by $3,000 each year ($79,000 the first year, to $82,000 the second year, $85,000 the third year, and so forth), and she plans to deposit 10% of her yearly salary into a retirement fund that earns 8% interest compounded daily. What will be the amount of interest accumulated at the time of Emily's retirement? Assume 365 days per year.
Emily Dorsey's current salary is $79,000 per year, and she is planning to retire 17 years from now. She anticipates that her annual salary will increase by $3,000 each year ($79,000 the first year, to $82,000 the second year, $85,000 the third year, and so forth), and she plans to deposit 10% of her yearly salary into a retirement fund that earns 8% interest compounded daily. What will be the amount of interest accumulated at the time of Emily's retirement? Assume 365 days per year.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 23P
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Transcribed Image Text:Emily Dorsey's current salary is $79,000 per year, and she is planning to retire 17 years from now. She anticipates that her annual salary will increase by $3,000 each
year ($79,000 the first year, to $82,000 the second year, $85,000 the third year, and so forth), and she plans to deposit 10% of her yearly salary into a retirement fund
that earns 8% interest compounded daily. What will be the amount of interest accumulated at the time of Emily's retirement? Assume 365 days per year.
The amount of interest accumulated at the time of Emily's retirement will be S
thousand. (Round to the nearest whole number)
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