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Terri joined her company with a starting salary of $75,000. She expects a salary increase of 3 percent every year. Her retirement plan requires her
Terri joined her company with a starting salary of $75,000. She expects a salary increase of 3 percent every year. Her retirement plan requires her to contribute 9 percent of her salary, while the company provides a 329% match on her contribution. She expects an annual return of 7.7 percent on her retirement portfolio. For modeling purposes, assume that the return on investment only applies to the previous year's balance. A starting framework for a spreadsheet model is given below. How much money will she have in her account at the end of the second year (in whole dollars rounded if needed with no commas or S sign) Retirement Plan Year Year 2 Salary Reetirement contribution (percent of salary) Employer match Annual salary increase Annual return on investment Total $75,000 96 $6,750 326 S2,160 396 7.796 $8,910
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