Calculator Problem – 01/17/2011

A twenty-two-year-old teacher makes $30,000 a year. The teacher contributes 8% of her salary to her retirement and the school contributes another 13% on a monthly basis. If her retirement account earns 7.25% on investments, how much money will she have when she is 62?

(The answer will be posted with the new calculator problem in 2 weeks.  Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)

Answer to 01-03-2011 problem:

132.10% (N=5, PV= -35,000, PMT=0, FV=59,000)