Katy contributes 6% of her salary tp a pension plan at the end of each year. She strated this year with the salary of $70,000 per year. Assuming that her salary is increased by 3% and the interest rate of the pension plan is 7%. Calculate the amount of money in her account after 10 years.
a.33,266
b.48696
c.55,493
d. 95,787
Formula for GP will be helpful here, which is:
Here,
a is first term.
r is common difference.
n is number of terms.
In the last step of equation,
a is 1.07^9.
r is (1.03/1.07)
n is 10.
The amount of money in account after 10 years is $65,439.67.
Katy contributes 6% of her salary tp a pension plan at the end of each year....
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