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 $20,000. 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
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 $20,000. 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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![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 $20,000. 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?
$4,202,290.77
$5,480,462.35
O $5,315,867.58
O $4,138,818.64
O $3,543,911.72](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcbbb58e9-1858-4d62-8ad9-26d3be75e20a%2Fe7ec1ec0-6fdd-4107-b63a-731565c6e570%2F9ypwv9i_processed.jpeg&w=3840&q=75)
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 $20,000. 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?
$4,202,290.77
$5,480,462.35
O $5,315,867.58
O $4,138,818.64
O $3,543,911.72
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