Effective annual rate of interest

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Reference no: EM131859671

An employee age 40 earns $40,000 per year and expects to receive 3% annual raises at the end of each year for the next 25 years. The employee contributes 4% of annual salary at the beginning of each year for the next 25 years into a retirement plan. How much will be available for retirement at age 65 if the fund earns a 5% effective annual rate of interest?

Reference no: EM131859671

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