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1. 2. You just got hired at a really good job that has a retirement savings matching program. The program promises to match up to
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You just got hired at a really good job that has a retirement savings matching program. The program promises to match up to 5% of your salary if you put it in a retirement account. You choose to save 5% of your monthly income each month. If your retirement account has a growth rate of 6.7% per year, and your monthly income is $6,000 per month, how much will you have after 35 years? Assume that your retirement account compounds each month. For a concrete example of the matching program: if your monthly salary was $12,000, then you would contribute 5% which is $600, and you employer would also contribute the same amount ($600) for a total of $1,200 each month put into your retirement account Make your answer positive and round to the nearest dollar. How long would it take for $369.37 to grow to be $635.04 if your interest rate is 11.50%? Answer in years to the nearest hundredthStep by Step Solution
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