Assignment:
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?
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$2,323,623 |
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$1,926,377 |
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None of the answers above or below |
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$4,203,528 |
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$1,072,417
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