Suppose your starting salary is $50,000. You would like to open a savings account to save for your retirement and any large future expenses. Most Economists agree that you should allocate 20% of your salary towards your investment goals. Assuming that your salary does not change for the next 30 years and you find an account that pays 5% annually, answer the following questions.

a. How much would you have in your savings account, 30 years later?

b. How would the amount in Problem 1 change if your salary increases by$100 every year?(Answer: You will have$14,575,54 more in your account)

Answer rating: 100% (QA)

Savings Account Balance after 30 Years We can calculate the future value of your savings account usi... View the full answer