Suppose that you are 30 years old today, and that you are planning to retire at age 65. Your salary this year is $50,000 and you expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 10% of this year’s salary. Likewise, you expect to deposit 10% of your salary each year until you reach age 65. Assume that the interest rate is 7%.(10pts) (a)What is the present value (at age 30) of your retirement savings?(3pts) (b)How much will you have in your savings account on your 65th birthday?
