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Your job pays you only once a year, for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $67,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 10.7 percent per year. Your salary will increase at 4 percent per year throughout your career. How much money will you have on the date of your retirement 45 years from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $1

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Answer #1
Year Per year Annual Salary Amount Deposited Annuity factor Future Value
1 69680 6968 87.59823 610384.4494
2 72467.2 7246.72 79.13119 573441.5785
3 75365.888 7536.5888 71.48256 538734.6356
4 78380.5235 7838.05235 64.57322 506128.2936
5 81515.7445 8151.57445 58.33173 475495.4158
6 84776.3742 8477.63742 52.69352 446716.5605
7 88167.4292 8816.74292 47.60029 419679.5148
8 91694.1264 9169.41264 42.99936 394278.8577
9 95361.8914 9536.18914 38.84314 370415.5483
10 99176.3671 9917.63671 35.08866 347996.5404
11 103143.422 10314.3422 31.69707 326934.4192
12 107269.159 10726.9159 28.63331 307147.0605
13 111559.925 11155.9925 25.86568 288557.3106
14 116022.322 11602.2322 23.36556 271092.6857
15 120663.215 12066.3215 21.1071 254685.0886
16 125489.743 12548.9743 19.06694 239270.544
17 130509.333 13050.9333 17.22397 224788.9483
18 135729.707 13572.9707 15.55915 211183.8358
19 141158.895 14115.8895 14.05524 198402.1583
20 146805.251 14680.5251 12.69669 186394.0782
21 152677.461 15267.7461 11.46946 175112.7745
22 158784.559 15878.4559 10.36085 164514.2597
23 165135.941 16513.5941 9.359392 154557.2087
24 171741.379 17174.1379 8.454736 145202.7977
25 178611.034 17861.1034 7.637521 136414.5525
26 185755.476 18575.5476 6.899296 128158.2065
27 193185.695 19318.5695 6.232427 120401.5671
28 200913.122 20091.3122 5.630015 113114.3901
29 208949.647 20894.9647 5.085831 106268.2617
30 217307.633 21730.7633 4.594247 99836.48792
31 225999.938 22599.9938 4.150178 93793.99046
32 235039.936 23503.9936 3.749031 88117.20874
33 244441.533 24444.1533 3.386659 82784.00821
34 254219.195 25421.9195 3.059312 77773.59398
35 264387.963 26438.7963 2.763607 73066.42976
36 274963.481 27496.3481 2.496483 68644.16165
37 285962.02 28596.202 2.255179 64489.54663
38 297400.501 29740.0501 2.037198 60586.38527
39 309296.521 30929.6521 1.840288 56919.45861
40 321668.382 32166.8382 1.66241 53474.46879
41 334535.117 33453.5117 1.501725 50237.98333
42 347916.522 34791.6522 1.356572 47197.38271
43 361833.183 36183.3183 1.225449 44340.81122
44 376306.51 37630.651 1.107 41657.13068
45 391358.771 39135.8771 1 39135.87707
Total 9477526.467

Money you will have on the date of your retirement = 9,477,526.47

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