Home Insert Page Layout Formulas Data Review View Acrobat Cut a Copy Calibri eas

Question

Home Insert Page Layout Formulas Data Review View Acrobat Cut a Copy Calibri eastejFormat Painter :1:0-a- : Merge & Center. : $ Blu . Clipboard Font Alignment 06. (15 pts) After Sally graduates, she finds a job with a starting salary of $50,000, and she expects that each year she will get a 2% raise (ie, 2% more than the previous year). She decides to deposit 10% of her annual salary at the end of each year in a savings account that earns 6%. After 40 years of working, how much will she have saved for retirement? 1 10 12 13 15 16 17 18

Explanation / Answer

Year Salary Savings FV 1 50000 5000 48517.53744 2 51000 5100 46686.68697 3 52020 5202 44924.9252 4 53060.4 5306.04 43229.645 5 54121.61 5412.161 41598.33764 6 55204.04 5520.404 40028.58905 7 56308.12 5630.812 38518.07626 8 57434.28 5743.428 37064.56395 9 58582.97 5858.297 35665.90116 10 59754.63 5975.463 34320.01809 11 60949.72 6094.972 33024.92307 12 62168.72 6216.872 31778.69956 13 63412.09 6341.209 30579.50335 14 64680.33 6468.033 29425.55983 15 65973.94 6597.394 28315.16134 16 67293.42 6729.342 27246.66469 17 68639.29 6863.929 26218.48866 18 70012.07 7001.207 25229.11173 19 71412.31 7141.231 24277.06978 20 72840.56 7284.056 23360.95394 21 74297.37 7429.737 22479.40851 22 75783.32 7578.332 21631.12894 23 77298.98 7729.898 20814.85992 24 78844.96 7884.496 20029.39351 25 80421.86 8042.186 19273.56734 26 82030.3 8203.03 18546.26291 27 83670.91 8367.091 17846.40394 28 85344.32 8534.432 17172.95473 29 87051.21 8705.121 16524.9187 30 88792.23 8879.223 15901.33687 31 90568.08 9056.808 15301.28642 32 92379.44 9237.944 14723.87938 33 94227.03 9422.703 14168.26129 34 96111.57 9611.157 13633.60992 35 98033.8 9803.38 13119.13408 36 99994.48 9999.448 12624.07241 37 101994.4 10199.44 12147.69232 38 104034.3 10403.43 11689.28884 39 106114.9 10611.49 11248.1836 40 108237.2 10823.72 10823.72384 Total $ 1,009,709.78

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