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A forty-year-old employee earns $75,000 per year and expects to receive 2.5% annual raises at the end of each year for the ne
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Answer #1
Year Salary Contribution @ 4% at beginning of year Total fund value at beginning of year Interest @ 4% Total fund value at end of year
1 75000.00 3000.00 3000.00 120.00 3120.00
2 76875.00 3075.00 6195.00 247.80 6442.80
3 78796.88 3151.88 9594.68 383.79 9978.46
4 80766.80 3230.67 13209.13 528.37 13737.50
5 82785.97 3311.44 17048.94 681.96 17730.90
6 84855.62 3394.22 21125.12 845.00 21970.12
7 86977.01 3479.08 25449.21 1017.97 26467.17
8 89151.43 3566.06 30033.23 1201.33 31234.56
9 91380.22 3655.21 34889.77 1395.59 36285.36
10 93664.72 3746.59 40031.95 1601.28 41633.23
11 96006.34 3840.25 45473.48 1818.94 47292.42
12 98406.50 3936.26 51228.68 2049.15 53277.83
13 100866.66 4034.67 57312.49 2292.50 59604.99
14 103388.33 4135.53 63740.53 2549.62 66290.15
15 105973.04 4238.92 70529.07 2821.16 73350.23
16 108622.36 4344.89 77695.13 3107.81 80802.93
17 111337.92 4453.52 85256.45 3410.26 88666.70
18 114121.37 4564.85 93231.56 3729.26 96960.82
19 116974.40 4678.98 101639.80 4065.59 105705.39
20 119898.76 4795.95 110501.34 4420.05 114921.39
21 122896.23 4915.85 119837.24 4793.49 124630.73
22 125968.64 5038.75 129669.48 5186.78 134856.26
23 129117.85 5164.71 140020.97 5600.84 145621.81
24 132345.80 5293.83 150915.64 6036.63 156952.27
25 135654.45 5426.18 162378.45 6495.14 168873.58

Retirement Fund Value = 168873.58

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