An engineer planning for her retirement will deposit 10% of her salary each year into a stock found. The initial balance in her stock found (year 0) is S20,000. If her salary this year is S120,000 (end of year 1) and she expects her salary to increase by 5% each year, what will be the future worth of the found after 25 years if it earns 15% per year? O $4,202,290.77 $5,480,462.35 O 5,315,867.58 O 4,138,818.64 $3.543.911.72
An engineer planning for her retirement will deposit 10% of her salary each year into a stock found. The initial balance in her stock found (year 0) is S20,000. If her salary this year is S120,000 (end of year 1) and she expects her salary to increase by 5% each year, what will be the future worth of the found after 25 years if it earns 15% per year? O $4,202,290.77 $5,480,462.35 O 5,315,867.58 O 4,138,818.64 $3.543.911.72
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:An engineer planning for her retirement will deposit 10% of her salary each year into a stock found. The
initial balance in her stock found (year 0) is S20,000. If her salary this year is $120,000 (end of year 1) and
she expects her salary to increase by 5% each year, what will be the future worth of the found after 25
years if it earns 15% per year?
O $4,202.290.77
O 5,480,462.35
O 5,315,867.58
O $4,138,818.64
O 3,543,911.72
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