Business, 25.03.2021 01:00 miguel454545

Assume that you are 25 years old today, and that you are planning on retirement at age 65. You expect your salary to be $55,000 one year from now and you also expect your salary to increase at a rate of 3% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 26th birthday and will be 12% of this year's salary. Likewise, you expect to deposit 12% of your salary each year until you reach age 65. Assume that the rate of interest is 5%. The future value (FV) (at age 65) of your retirement savings is closest to:
a. $1,091,733.20
b. $1,246,723.80
c. $988,452.90
d. $1,225,821.20

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Assume that you are 25 years old today, and that you are planning on retirement at age 65. You expec...

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