Your job pays you only once a year, for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $75,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 9.5 percent per year. Your salary will increase at 3.4 % per year throughout your career. How much money will you have on the date of your retirement 35 years from today? Give typing answer with explanation and conclusion
Your job pays you only once a year, for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $75,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 9.5 percent per year. Your salary will increase at 3.4 % per year throughout your career. How much money will you have on the date of your retirement 35 years from today? Give typing answer with explanation and conclusion
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 23P
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1) Your job pays you only once a year, for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $75,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 9.5 percent per year. Your salary will increase at 3.4 % per year throughout your career. How much money will you have on the date of your retirement 35 years from today?
Give typing answer with explanation and conclusion
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