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Your job pays you once a year for all the work you did over the previous...

Your job pays you once a year for all the work you did over the previous 12 months. Today, December 31st, you received your salary of $55,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 9% of your annual salary in an account that will earn 10% per year. Your salary will increase at 3% per year throughout your career. How much money will you have on the date of your retirement 40 years from today?

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Answer #1
Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Salary 55000 56650 58349.5 60099.99 61902.98 63760.07 65672.88 67643.06 69672.35 71762.53 73915.4 76132.86 78416.85 80769.35 83192.43 85688.21 88258.85 90906.62
Invested 0 5098.5 5761.305 5985.129 6169.782 6355.385 6546.097 6742.485 6944.76 7153.103 7367.696 7588.727 7816.389 8050.881 8292.407 8541.179 8797.415 9061.337
Interest 0 509.85 576.1305 598.5129 616.9782 635.5385 654.6097 674.2485 694.476 715.3103 736.7696 758.8727 781.6389 805.0881 829.2407 854.1179 879.7415 906.1337
Year 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
Salary 93633.82 96442.83 99336.12 102316.2 105385.7 108547.3 111803.7 115157.8 118612.5 122170.9 125836 129611.1 133499.4 137504.4 141629.6 145878.4 150254.8 154762.4
Invested 9333.177 9613.173 9901.568 10198.61 10504.57 10819.71 11144.3 11478.63 11822.99 12177.68 12543.01 12919.3 13306.88 13706.09 14117.27 14540.79 14977.01 15426.32
Interest 933.3177 961.3173 990.1568 1019.861 1050.457 1081.971 1114.43 1147.863 1182.299 1217.768 1254.301 1291.93 1330.688 1370.609 1411.727 1454.079 1497.701 1542.632
Year 36 37 38 39 40
Salary 159405.3 164187.5 169113.1 174186.5 179412.1
Invested 15889.11 16365.78 16856.76 17362.46 17883.33
Interest 1588.911 1636.578 1685.676 1736.246 0
Formulas entered in year 1(for example)
(same formulas carried forward)
Salary in Year 1 (Salary in Year 0)*1.03
Invested in Year 1 (Salary in Year 1)*0.09+Int in Year 0
Interest(C50) (Invested in year 1)*0.1
0 2
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