Expect the price to increase by an average

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1. Today, you earn a salary of $45,000 per year. What will be your annual salary 8 years from now if you earn annual raises of 3% per annum?

2. You hope to buy your dream car 5 years from now. Today, that car costs $41,100. You expect the price to increase by an average of 4% per year over the next 5 years. How much will your dream car cost by the time you are ready to buy it?

3. You are depositing $3,200 in a retirement account today and expect to earn an average return of 8% per year on this money. How much additional income will you earn if you leave the money invested for 25 years instead of just 20 years?

Reference no: EM13883396

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