Because your salary should increase every year, the amount you invest for retirement should also increase every year. Let’s find a better investment plan: The average American starting salary in 2019 for a college graduate is $50,000 a year The average salary increases by 2% a year The average American works for 35 years It is wise to invest 10% of your salary a year If you use the above information and invest into a retirement savings account with a 8% interest rate compounded annually, how much money will you have when you retire? Show an algebraic solution below: Complete the 2nd tab of the Google Spreadsheet attached with this assignment showing the details of this retirement plan.
Because your salary should increase every year, the amount you invest for retirement should also increase every year. Let’s find a better investment plan: The average American starting salary in 2019 for a college graduate is $50,000 a year The average salary increases by 2% a year The average American works for 35 years It is wise to invest 10% of your salary a year If you use the above information and invest into a retirement savings account with a 8% interest rate compounded annually, how much money will you have when you retire? Show an algebraic solution below: Complete the 2nd tab of the Google Spreadsheet attached with this assignment showing the details of this retirement plan.
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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Because your salary should increase every year, the amount you invest for retirement should also increase every year. Let’s find a better investment plan:
- The average American starting salary in 2019 for a college graduate is $50,000 a year
- The average salary increases by 2% a year
- The average American works for 35 years
- It is wise to invest 10% of your salary a year
- If you use the above information and invest into a retirement savings account with a 8% interest rate compounded annually, how much money will you have when you retire? Show an algebraic solution below:
- Complete the 2nd tab of the Google Spreadsheet attached with this assignment showing the details of this retirement plan.
Transcribed Image Text:- fx | Year of Career
A1
A
B
D
E
G
H
Amount
Invested at
Year's End
1
Future Value of
Year of Career
Salary
Investment
2
1
$50,000.00
3
4
4
6.
5
7
6
7
9
10
11
10
12
11
13
12
14
13
15
14
16
15
17
16
18
17
Problem 3 - Sophie's and Jack's Plans
Problem 4 - A More Realistic Problem
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