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You can start working on a job that pays $ 90 ,000 per year now at t=0 . You plan to work for the next
You can start working on a job that pays $90,000 per year now at t=0. You plan to work for the next 35 years and you expect that your income will grow at 4.5% per year. You plan to save 15% every year and you expect to earn 4.5% per year on your savings.For computational simplicity, assume that you are paid your annual salary in a lump sum at the end of each working year How much will you have when you retire at t=35?
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