Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Accounting Assume that you make an annual salary of $120,000 for the entire year starting at the age of 22.Your salary grows each year at

Accounting Assume that you make an annual salary of $120,000 for the entire year starting at the age of 22.Your salary grows each year at 5%. You save 10% of your salary from ages 22-32 with an investment return per year of 7% What is the total amount of these savings when you retire at age of 60. Assume a 1.5% in annual trading, management and advisory cost. What is your revised investment return per year? What does this do to your retirement fund at age 60?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Age Opening Balance Investment Interest Closing Balance 22 1200000 84000 1284000 23 1284000 1260000 178080 2722080 24 2722080 1323000 283156 4328236 25 4328236 1389150 400217 6117603 26 6117603 145860... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Karen W. Braun, Wendy M. Tietz

4th edition

978-0133428469, 013342846X, 133428370, 978-0133428377

More Books

Students also viewed these Accounting questions