In January, you start a job with Acme manufacturing at salary of $66,000 per year paid in equal amounts over 12 months. You have negotiated for a guaranteed 3% raise each year while you work at Acme and you decide to save 10% of your monthly income for retirement. Assume interest equals 1% /month compounded monthly. What is the balance of your retirement account at the end of five years?
In January, you start a job with Acme manufacturing at salary of $66,000 per year paid in equal amounts over 12 months. You have negotiated for a guaranteed 3% raise each year while you work at Acme and you decide to save 10% of your monthly income for retirement. Assume interest equals 1% /month compounded monthly. What is the balance of your retirement account at the end of five years?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 4P
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