SOLUTION: I want to be earning an annual salary of $100,000 when I retire in 19 years. I have been offered a job that guarantees an annual salary increase of 4% per year, and the starting sa
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Question 1069117: I want to be earning an annual salary of $100,000 when I retire in 19 years. I have been offered a job that guarantees an annual salary increase of 4% per year, and the starting salary is negotiable. What is the lowest salary that I should request in order to meet my goal? (Round your answer to the nearest cent.) Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! A=Ao(1+.04)^19
100,000=1.04^19* Ao
100,000/(1.04^19)=$47464.24
This is a little more than doubling over 19 years
the Rule of 70 would predict doubling time in 17.5 years (70/rate in per cent), so this is reasonable.
