You have 30 years left until retirement and want to retire with $1.5 million. Your salary is paid annually, and will receive $70,000 at the end of the current year. Your salary will increase at 3 percent per year, and you can earn an 10 percent return on the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year?

You have 30 years left until retirement and want to retire with $1.5 million. Your salary is paid annually, and will receive $70,000 at the end of the current year. Your salary will increase at 3 percent per year, and you can earn an 10 percent return on the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 34P

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