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Suppose you can earn a $80,000/year salary after graduation. You plan on investing 15% of your gross annual income into an equity mutual fund until
Suppose you can earn a $80,000/year salary after graduation. You plan on investing 15% of your gross annual income into an equity mutual fund until retirement, which is expected to earn 8% per year in real terms. If your salary increases by 10% every five years, how much will you have in your retirement account in 30 years?
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