Assume that your annual cash flow deposit, savings account rate, salary increase rate, and inflation rate could each become 10% better or 20% worse. Construct a spider plot of the value after 40 years in year-1 dollars.
Problem 30
Your beginning salary is $30,000. You deposit 10% each year in a savings account that earns 6% interest. Your salary increases by 5% per year, and inflation is 3% per year. What value does your savings account show after 40 years? What is the value in year-1 dollars? (Answer: $973,719 and $307,455).