Present value. You are currently in the job market. Your dream is to earn a six-figure...

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Present value. You are currently in the job market. Your dream is to earn a six-figure...

Present value. You are currently in the job market. Your dream is to earn a six-figure salary ($120 comma 000). You hope to accomplish this goal within the next 27 years. In your field, salaries grow at 3.75% per year. What starting salary do you need to reach this goal?

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Answer 1

Answer #1

Present value=$120,000*Present value of discounting factor(rate%,time period)

=$120,000/1.0375^27

=$120,000*0.370101763

=$44,412.21(Approx).

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Answer 2

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