Your Starting Salary as a Mechanical Engineer Is Expected to Be

question 3

Essay

Your starting salary as a mechanical engineer is expected to be $55,000. A total of 10% of your salary each year
will be placed in the mutual fund of your choice. You can also count on a 5% annual salary increase for the next
30 years of employment. If the mutual fund will average 9% annual return over the course of your career, how
much can you expect at retirement?

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Definitions:

Bid and Ask Prices

The bid price is the highest price a buyer is willing to pay for a security, while the ask price is the lowest price a seller is willing to accept.

Bid-Ask Spread

The difference between the highest price that buyers are willing to pay for an asset and the lowest price that sellers are willing to accept.

Commission Income

Revenue earned by an individual or company for facilitating a transaction or service, often a percentage of the transaction value.

Price Continuity

The concept that securities should have consistent pricing through time without large gaps or discontinuities.