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Assume that you are 2 6 years old today and that you are planning on retirement at age 6 8 . Your current salary is

Assume that you are 26 years old today and that you are planning on retirement at age 68. Your current salary is $40,000 and you expect your salary to increase at a rate of 6% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 27th birthday and will be 10% of this year's salary. Likewise, you expect to deposit 10% of your salary each year until you reach the age of 68. Assume that the rate of interest is 8%. How much money will you have in your retirement account at age 68?

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