Question

Q#1) Seekie is 50 years old and his salary next year will be $80,000. He forecasts that his salary will increase at a steady rate of 4% per year until her retirement at age 60. (a) If the interest rate is 8% per year, what is the PV of these future salary payments? (b) If Seekie saves 4% of his salary each year and invests these savings at an interest rate of 8%, how much will he have saved by age 60?