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Present value of future income

You are about to graduate, and you are wondering what is the present value of your future income. Your salary next year will be $85,000. You expect a 5% raise each year and the interest rate is 7%. Your plan is to retire in 32 years. What is the present value of your future income, rounded to the nearest dollar?

$2,323,623

$1,926,377

None of the answers above or below

$4,203,528

$1,072,417

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Finance Basics: Present value of future income

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Present value of future income

Reference No:- TGS0553220

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Present value of future income

Reference No:- TGS0553220

Recent Questions Asked Finance Basics

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Q : Integrate the instructional business

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