Contemporary Engineering Economics 6th Edition by Chan Park

Exercise 11

Emily Dorsey's current salary is $75,000 per year, and she is planning to retire 25 years from now. She anticipates that her annual salary will increase by $3,000 each year (to $75,000 the first year, $78,000 the second year, $81,000 the third year, and so forth), and she plans to deposit 5% of her yearly salary into a retirement fund that earns 7% interest compounded daily. What will be the amount of interest accumulated at the time of Emily's retirement