Marie's current salary as a Systems Engineer is $100,000 per year. She's planning to place 18% of her salary each year in a mutual fund. She expects a 4% salary increase each year for the next 16 years of employment. If the mutual fund will average a rate of return of 12% per year, what will be the amount of interest accumulated at the time of her retirement in 16 years?

Marie's current salary as a Systems Engineer is $100,000 per year. She's planning to place 18% of her salary each year in a mutual fund. She expects a 4% salary increase each year for the next 16 years of employment. If the mutual fund will average a rate of return of 12% per year, what will be the amount of interest accumulated at the time of her retirement in 16 years?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 8E

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