What is the amount of the last deposit

Reference no: EM131970522

Question: An engineer begins his first job at a wage of $60,000 per year when he's 25 years old. He expects that his raises will be 3% per year. He starts investing 10% of his first year's salary ($60,000) on his 26^th birthday, and then increases his contribution by 3% per year until his last deposit on his 65^th birthday.

a. What is the amount of his last deposit, on his 65^th birthday?'

b. If he expects his rate of return to be 8%, how much will he have in his account at age 65?

c. If the engineer would like to pay himself $50,000 per year starling on his 66^th birthday, and continue doing so indefinitely, what is the minimum rate of return must he must realize during that time?

Reference no: EM131970522

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