Question: 1. PV = C { 1- [(1 +g ) / (1+r) ]^ t } C = after tax salary (60,030), g= 4%, r = 5.5%,

1.

PV = C { 1- [(1 +g ) / (1+r) ]^ t } C = after tax salary (60,030), g= 4%, r = 5.5%, t= 36 years,

(r g)

$60,030 [ 1- [1+.04)/ (1+.055)] ^36 / (.055 -.04)} =

2.

PV = C { 1 [(1+ g ) / (1 + r)]^ t } C= After tax salary (55,380) , g= 3.5%, r = 5.55, t = 37 years

( r g )

$55,380 [[1-(1+.035)/(1+.055) ]^37/( .055-.035)} =

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