Deniecehas accumulated in her thrift savings plan at her job

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Deniecehas accumulated $50,000 in her thrift savings plan at her job at the FederalAviation Administration.The governmentputs in 1% of her pay and matches up to another 4% if she puts in 5% out of herpay.Deniece earns $80,000 a year andplans to add 5% from her income plus the agency 5% for a total of $8,000 peryear.Her cousin Eugene says that if sheinvests in stocks, she can earn 12% per year because that has been the longterm history.How much will she have in25 years at retirement if she can earn 12% per year compounded annually? 

Answer:

$1,916,674.18

 

 

Reference no: EM13803857

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