You have 35 years left until retirement and want to retire with $4.5 million. Your salary is paid annually, and you will receive $63,000 at the end of the current year. Your salary will increase at 3.3 percent per year, and you can earn an annual return of 9.3 percent or the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage of salary to save %

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
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You have 35 years left until retirement and want to retire with $4.5 million. Your salary is
paid annually, and you will receive $63,000 at the end of the current year. Your salary
will increase at 3.3 percent per year, and you can earn an annual return of 9.3 percent on
the money you invest. If you save a constant percentage of your salary, what percentage
of your salary must you save each year? (Do not round intermediate calculations and
enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Percentage of salary to save
%
Transcribed Image Text:You have 35 years left until retirement and want to retire with $4.5 million. Your salary is paid annually, and you will receive $63,000 at the end of the current year. Your salary will increase at 3.3 percent per year, and you can earn an annual return of 9.3 percent on the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage of salary to save %
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