You will retire in 26 years and can afford to put away 11 % of your salary each year. You make payments at the end of each year, including year 26 30. If your salary over the coming year is $118,930 but you expect it to grow at 4 % per year, and you assume a 7 % return (annually) on your 401K, how big will your "nest egg" be at retirement? (Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234. Please DO NOT do any intermediate rounding and only round the final answery
You will retire in 26 years and can afford to put away 11 % of your salary each year. You make payments at the end of each year, including year 26 30. If your salary over the coming year is $118,930 but you expect it to grow at 4 % per year, and you assume a 7 % return (annually) on your 401K, how big will your "nest egg" be at retirement? (Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234. Please DO NOT do any intermediate rounding and only round the final answery
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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Transcribed Image Text:You will retire in 26 years and can afford to put away 11 % of your
salary each year. You make payments at the end of each year,
including year 26 30. If your salary over the coming year is $118,930
but you expect it to grow at 4 % per year, and you assume a 7%
return (annually) on your 401K, how big will your "nest egg" be at
retirement? (Round your answer to three decimal places. For example
1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be
rounded to 1.234. Please DO NOT do any intermediate rounding and
only round the final answer
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