With the company retirement plan

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With the company retirement plan, you set aside a 6% of your salary each year to a 401(k) plan, with your employer matching dollar to dollar. You make the first 401(k) contribution on your 29th birthday based on the current salary of $72,000. Assume the contributions are made annually. You expect your salary to increase 3% a year, and the expected return on the retirement account is 8% per annum. How much do you expect to have at your retirement at age 67 (last contribution on your 67th birthday)? Hint: first find the PV of the cash flows, and convert it to a FV.

Reference no: EM131972700

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