Blake is 30 years old today, and he is planning on his retirement at age 65. His
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Question:
Blake is 30 years old today, and he is planning on his retirement at age 65. His currently salary is $45000 and he expects his salary to increase at a rate of 5% per year as long as he works. To save for the retirement, he plans on making annual contributions to a retirement account. His first contribution will be made on his 31st birthday and will be 8% of this year's salary. Likewise, he expects to deposit 8% of his salary each year until he reaches age 65. Assume that the rate of interest is 7%. The future value at retirement (age 65) of his saving is closest to
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