Consider the following scenario: After graduating college your first job pays $60,000 for the first five years. Your salary is fixed for the first two years after which you find a new job with better payment terms, starting at an initial salary of $100,000 for the first year, which is expected to grow at a rate of 5% every year. Assuming you retire after 30 years at the second job. What is the present worth of all your future earnings?
Based on this assuming that you deposit 30% of your salary in a savings account, which pays at an APR of 4%. Estimate how much money you will have in the savings account by the date of retirement.