Question 3 27.27 pts (Please pay close attention to the question at the end of this problem) You are only 28 years old but wise enough to know that life passes fast, and you are thinking about life after work. As a UNT graduate, you estimate that your starting gross salary will be about $70,000. This salary is likely to grow at 2% per year (in nominal terms, including inflation) until your retirement at the age of 65. You will be paying about 25% in taxes After retirement, you would like to visit your grandchildren and to travel the world. To afford this life style, you estimate that you will spend the equivalent to today's $6,000 per month. These expenditures will increase at the same rate as inflation, so you will not lose purchasing power. The inflation rate is expected to be 2% Unfortunately, the average retired worker receives $1,340 according to the Social Security Administration (SSA). You hope that the SS check will also grow at the inflation per year, but this will not be enough. You are planning to save and to invest some money every month. You estimate that the average return on the savings will be 7% After retirement, you will invest all the savings in US treasuries, a safe investment but with a lower 3.5% interest rate. You are sure that you will not be saving during the first 2 years of work (you will have loans to pay, a car to buy, perhaps also a home). So, you plan to start saving at the age of 30 and to do so for 35 years. Realistically, you will enjoy retirement only for about 20 years (85 is more than the average life expectancy). Question: Approximately, what is the present value (today at the age of 28) of all your after tax salaries? This is: Approximately, what is the PV of all the money in salaries, after taxes, you have received in 37 years from the age of 28 to the age of 65? Of you cannot find your answer in the choices below, please choose the choice that is closest to your answer) $1.208,000 51.282.000 5961,000 $906,000 $2,590,000