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Question

Your current salary is $50,000 per year, and you are planning to retire 20

years from now. You anticipate that your annual salary will increase by $1,000 each year. (That is, in the first year you will earn $50,000, in the second year $51,000, in the third year $52,000, and so forth.) You plan to deposit 3% of your yearly salary into a retirement fund that earns 8% interest compounded daily. What will be the amount accumulated at the time of your retirement? (Assume 365 days/year).



Options:


$176,865.5


$19,322.97


$81,097.4


None of these answers


$45,113.76

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