Encourage its employees to save money for retirement

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In order to encourage its employees to save money for retirement, a large pharmaceutical company offers a guaranteed rate of return of 10% per year, without regard to the market interest rate. If a new engineer invests $5000 per year for 10 years at a time when the inflation rate averages 3% per year, how much will be in the account at the end of the 10-year period?

Reference no: EM131118688

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