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Lifetime Salary Growing Annuity Calculations

CORPFN-TVTCGK

You have just graduated and were offered a job at \$50,000 a year. You anticipate your salary to increase by 6% a year (on average) until your retirement in 40 years. Using an interest rate of 10%, what is the present value of your lifetime salary?

A

$966,451

B

$1,024,434

C

$461,278

D

$1,250,000