A civil engineer planning for her retirement places 9% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $160,000 and she expects her salary to increase by 5% each year, what will be the future worth of her retirement fund after 16 years provided it earns 8% per year?
A civil engineer planning for her retirement places 9% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $160,000 and she expects her salary to increase by 5% each year, what will be the future worth of her retirement fund after 16 years provided it earns 8% per year?
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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![A civil engineer planning for her retirement places 9% of her salary each year into a high-technology stock fund. If her salary this year
(end of year 1) is $160,000 and she expects her salary to increase by 5% each year, what will be the future worth of her retirement fund
after 16 years provided it earns 8% per year?
The future worth of her retirement fund will be $ 481855.8](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4fa378b4-515d-44b6-b8a6-81603afb9f37%2Fb34cc51b-2cdf-42ed-847b-f547a27020c5%2Fbav81i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A civil engineer planning for her retirement places 9% of her salary each year into a high-technology stock fund. If her salary this year
(end of year 1) is $160,000 and she expects her salary to increase by 5% each year, what will be the future worth of her retirement fund
after 16 years provided it earns 8% per year?
The future worth of her retirement fund will be $ 481855.8
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