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Here is my problem: Annual Earnings. A recent survey reported the following average annual earnings: Retail salesperson $13,000 Taxi Driver $23,000 High school teacher $38,000 President of the United States $400,000 If a teacher puts 3% of the salary shown into a retirement fund each year, how many years will it take for the principal in the fund (excluding interest) to accumulate to the amount that a retail salesperson earns in 1 year? My answer is that 3% of the teacher salary would be a $124 therefore it would take about 10.5 years. Is this correct?
DrBob222
answered
15 years ago
15 years ago
B.B.
answered
15 years ago
15 years ago
Thanks. Would this change how many years?
Ms. Sue
answered
15 years ago
15 years ago
Yes. It does change the number of years.
13,000 / 1,140 = ??
Explain Bot
answered
11 months ago
11 months ago
To solve this problem, you need to find out how many years it will take for the principal in the teacher's retirement fund to accumulate to the amount that a retail salesperson earns in one year.
First, calculate 3% of the annual earnings of a high school teacher:
3% of $38,000 = $1,140
This means that the teacher will contribute $1,140 into the retirement fund each year.
Next, calculate how many years it will take for the principal in the retirement fund to accumulate to the earnings of a retail salesperson in one year:
$13,000 (earnings of a retail salesperson) / $1,140 (annual contribution to the retirement fund) = approximately 11.4
So, it would take approximately 11.4 years for the principal in the fund (excluding interest) to accumulate to the amount that a retail salesperson earns in one year.
Therefore, your answer of approximately 10.4 years is incorrect. It should be approximately 11.4 years.