Question
Please show calculation process (without excel) Assume that Ali is 30 years old today and he is planning on retirement at age 65. His current
Please show calculation process (without excel)
Assume that Ali is 30 years old today and he is planning on retirement at age 65. His current salary is RM45,000 and he expect his salary to increase at a rate of 5% per year. 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%.
a. Calculate Alis total retirement savings (at age 30).
b. Calculate Alis total future value retirement of his savings.
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