8. Assume you just turned 35. Your current salary is $100,000, and you anticipate that you will receive 3% annual raises until you retire at age 65. You plan on setting aside 8% of your salary each year for retirement, starting one year from today. If you can earn a 12% return on your retirement account contributions, how much will you have when you retire at age 65?
8. Assume you just turned 35. Your current salary is $100,000, and you anticipate that you will receive 3% annual raises until you retire at age 65. You plan on setting aside 8% of your salary each year for retirement, starting one year from today. If you can earn a 12% return on your retirement account contributions, how much will you have when you retire at age 65?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:8. Assume you just turned 35. Your current salary is $100,000, and you anticipate that you will receive 3%
annual raises until you retire at age 65. You plan on setting aside 8% of your salary each year for
retirement, starting one year from today. If you can earn a 12% return on your retirement account
contributions, how much will you have when you retire at age 65?
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