You have just graduated from Queen’s and started your first job which pays $50,000 per year. Your goal is to have $8,000,000 saved by the time you retire. You expect to retire in 45 years, your salary to grow by 5% per year, and to earn a 7% per year return from your savings. 

What is the minimum percent of your salary you must save each year to reach your goal? (Assume that you save the same percentage of your salary each year, and that you save this amount at the end of the year, so that the first savings occurs one year from today).

Answer rating: 100% (QA)

SOLUTION To determine the minimum percent of your salary you must save each year to reach your goal ... View the full answer