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Assume that you are 30 years old today, and that you are planning on retirement at age 65. You expect your salary to be $42,000

Assume that you are 30 years old today, and that you are planning on retirement at age 65. You expect your salary to be $42,000 one year from now and you also expect your salary to increase at a rate of 5% 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 31st birthday and will be 8% of this year's salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. Assume that the rate of interest is 9%.

The present value (PV) (at age 30) of your retirement savings is closest to ________.

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