The MacIntosh Company has an employee savings plan that allows every employee to invest up to 5% of his or her annual salary. The money is invested in company common stock with the company guaranteeing that the annual return will never be less than 8%.
Jill was hired at an annual salary of $52,000. She immediately joined the savings plan, investing the full 5% of her salary each year.
If Jill's salary increases annually at an 8% uniform rate, and she continues to invest 5% of it each year, how much money is she guaranteed to have at the end of 20 years?