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Problem:

A young scientist has just started her career with a federal government agency. She has good job security and expects consistent 5% annual salary increases. Her starting annual salary is $30,000. She plans to save 10% of her monthly salary at a bank, which pays 5.4% interest, compounded monthly. At the end of each year, she will put the accumulated savings into a money market fund that is expected to pay 8% interest at the end of each year.

Required:

Question: Calculate the amount of money she expects to have after ten years.

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162046

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