Question $18$

You currently earn $$120,000$ per year and plan to deposit $20\%$ of your salary in a

$401($k$)$ account that you expect to earn $7\%$ per year. You also expect that your salary

will increase $3\%$ per year. You plan to make a deposit to your account at the end of

each year for the next $40$ years, after which you will retire. How much money will you

have in your account when you retire?