Question

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?

Answer 1

0.03 x 38,000 looks more like $1,140 to me.

Answer 2

Thanks. Would this change how many years?

Answer 3

Yes. It does change the number of years.

13,000 / 1,140 = ??