A civil engineer planning for her retirement places 12% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $160,000 and she expects her salary to increase by 2% each year, what will be the future worth of her retirement fund after 16 years provided it earns 7% per year? The future worth of her retirement fund will be $____.
Added by Nicole B.
Step 1
The civil engineer contributes 12% of her salary each year. Her salary this year is $160,000. So, the amount she contributes this year is 12% of $160,000, which is 0.12 * $160,000 = $19,200. Show more…
Show all steps
Your feedback will help us improve your experience
Nick Johnson and 82 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
A civil engineer planning for her retirement places 10% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $160,000 and she expects her salary to increase by 3% each year, what will be the future worth of her retirement fund after 15 years provided it earns 7% per year?
Nick J.
A 40-year-old consulting engineer wants to set up a retirement fund to be used starting at age 65. $20,000 is invested now at 6% compounded annually. Approximately how much money will be in the fund at retirement?
Vishal P.
Kathleen C.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD