Bob made a salary of $70,000 in 2011. Bob invested 5% of his salary in a retirement account in 2011. Assume Bob receives a 3% raise each future year and continues to invest 5% of his salary each year in his retirement account. What amount of money would Bob have in his retirement account in 2020 if he can earn 7% per year on his investments? That is, the total value of Bob’s investments at the time of his 10th deposit is closest to… As always, assume end-of-period cash flows. (5)
a) $997.54
b) $555.56
c) $54,528.86
d) $ 313.98
e) $1,044.14
f) $ 1,932
g) $27,721.84