Question
You are saving for your retirement. You have decided that one year from today you will deposit 5 percent of your annual salary in an
You are saving for your retirement. You have decided that one year from today you will deposit 5 percent of your annual salary in an account which will earn 6 percent per year. Your salary currently (today) is 90000, and it will increase at 2 percent per year throughout your career. How much money will you have for your retirement, which will begin in 40 years? Assume your first payment into the account is one year from today after your first increase. In other words, your next year's paycheck (year1) is more than 90000 since it will increase by 2 percent each year.
a. 441,161.55
b. 710,400.00
c. 816,439.83
d. 909,513.99
e. 926,913.58
please show work so i can understand it
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