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Question - A 24 year old college graduate who makes a starting salary of $70,000 with projected increases of 5% every year. This person decides to save 10% of their income and plans to retire in 35 years.
Required -
a: How much will this person's first year savings be worth when they retire if interest compounds annually at 5%.
b: Same as Question 1, but use 10% interest.
c: What if you used 10% as in "b", but you let the money grow for five more years?
d: How much would you need to save your first year of full-time work at 7% interest to produce $50,000 at retirement?
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