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Show Work Steve has just been hired and asked to complete his retirement benefits package. His company is willing to meet his contribution every year
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Steve has just been hired and asked to complete his retirement benefits package. His company is willing to meet his contribution every year (e.g. if Steve decides to invest 5% of his salary at the end of every year into his retirement fund, his employer contributes with additional 5%, hence Steve's retirement plan is financed with an annual amount equal to 10% of his salary) and the retirement fund guarantees an annual yield of 6%. For simplicity purposes assume that Steve will have the same annual salary of 70,196 dollars for the next 27 years and then retires (assume that there is nothing else to consider, e.g. taxes). If George's goal is to have $3.5 million upon retirement, which PERCENTAGE of his income should he save every year? (tip: the question is asking for George's contribution, not the combined contribution of George and his employer) (note: round your answer to two decimal places and do not include spaces, percentage signs, or commas. If the answer is 1.53%, write 1.53 as your answer, not 0.0153)Step by Step Solution
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