Suppose Annie’s current salary is $65,000 per year, and she is planning to retire 25 years from now. She anticipates that her annual salary will increase by $1,800 each year. That is in the first year she will earn $65,000 in the second year $66,800 in the third year $68,600 and so forth. At the end of each of the next 25 years, she plans to deposit 10% of her salary from that year into a retirement fund that earns 6% interest compounded daily. How much money will be in her account at the time of her retirement.
Suppose Annie’s current salary is $65,000 per year, and she is planning to retire 25 years from now. She anticipates that her annual salary will increase by $1,800 each year. That is in the first year she will earn $65,000 in the second year $66,800 in the third year $68,600 and so forth. At the end of each of the next 25 years, she plans to deposit 10% of her salary from that year into a retirement fund that earns 6% interest compounded daily. How much money will be in her account at the time of her retirement.
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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Suppose Annie’s current salary is $65,000 per year, and she is planning to retire 25 years from now. She anticipates that her annual salary will increase by $1,800 each year. That is
in the first year she will earn $65,000 in the second year $66,800 in the third year $68,600 and so
forth. At the end of each of the next 25 years, she plans to deposit 10% of her salary from that
year into a retirement fund that earns 6% interest compounded daily. How much money will be in
her account at the time of her retirement.
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