Use the Information for the Question(s)below

question 74

Essay

Use the information for the question(s)below.
Assume that you are 30 years old today and that you are planning on retirement at age 65.Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work.To save for your retirement,you plan on making annual contributions to a retirement account.Your first contribution will be made on your 31st birthday and will be 8% of this year's salary.Likewise,you expect to deposit 8% of your salary each year until you reach age 65.Assume that the rate of interest is 7%.
-The future value at retirement (age 65)of your savings is:

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Definitions:

Stacked Bar Chart

A graphical display of data where several bars are placed on top of one another to represent the total amount broken down into different parts.

Pie Chart

A circular statistical graphic which is divided into slices to illustrate numerical proportion.

Skewed To The Right

A description of a distribution that has a long tail on the right side, indicating that there are a number of observations that are significantly higher than the rest of the data.

Skewed To The Left

Describes a distribution of data where the tail is longer on the left side of the distribution graph, indicating that the bulk of the data points are to the right.