Assume that you are 28 years old today and that you are

Last updated: 7/18/2023

Assume that you are 28 years old today and that you are planning on retirement at age 65 Your current salary is 54 000 and you expect your salary to increase at a rate of 4 per year as long as you work To save for your retirement you plan on making annual contributions to a retirement account Your first contribution will be made on your 29th birthday and will be 8 of this year s salary Likewise you expect to deposit 8 of your salary each year until you reach age 65 Assume that the rate of interest is 9 The present value PV at age 28 of your retirement savings is closest to 71 196 60 133