Problem

José is 25 years old. His current annual salary is $28,000. Over the next 20 years, he exp...

José is 25 years old. His current annual salary is $28,000. Over the next 20 years, he expects his salary to increase continuously at a rate of 1% per year. He establishes a fund paying 6% annual interest, compounded continuously, with an initial deposit of $2500 and a promise to deposit a fixed percentage of his annual income each year. Find that fixed percentage if José wants his balance to reach $50,000 at the end of the 20-year period.

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Solutions For Problems in Chapter 3.3
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