Compound Interest and Power of Saving Assignment

Compound Interest and Power of Saving Assignment - $ 3,266...

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Michelle Abercrombie Personal Financial Analysis and Planning: Key Findings Section 1: Estimating Your Monthly After-Tax Starting Pay Median annual starting salary from the University of Arizona Annual Starting Salary Survey $ 56,250 Median or average annual starting salary from NACE Salary Survey $ 59,208 Median or average annual starting salary from salary.com $ 55,402 Your forecasted annual starting pay, including all forms of cash compensation such as bonuses and commissions $ 56,000 Your forecasted tax rate including all taxes, federal, state, local, etc. (if you are unsure, just use 30%. That should be fine for a ball park estimate) 30% Your forecasted annual after-tax starting pay $ 39,200 Your forecasted monthly after-tax starting pay
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Unformatted text preview: $ 3,266 Amount you save each month, if you save 20% of your starting monthly after-tax pay $ 653 Section 2: Future Wealth A. Saving 20% of Your Forecasted Starting After-Tax Pay Every Month Value of Savings in Inflation Adjusted Today Dollars After: 5 years $ 49,177 10 years $ 124,842 20 years $ 420,389 30 years $ 1,120,056 40 years $ 2,776,423 50 years $ 6,697,645 B. Saving 20% of Your Forecasted Starting After-Tax Pay Initially, but then Increasing Your Monthly Savings by 20% Every 4 Years. Value of Savings in Inflation Adjusted Today Dollars After: 5 years $ 52,612 10 years $ 146,427 20 years $ 577,637 30 years $ 1,731,836 40 years $ 4,647,664 50 years $ 11,973,269...
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