Answer:
percentage of your salary save each year is 13.24%
Explanation:
given data
time period t = 25 year
amount = $1.1 million
salary = $61000
increase r1 = 4 percent per year = 0.04
return r2 = 10 percent = 0.1
to find out
what percentage of your salary must you save each year
solution
we consider here annual saving = A
so amount formula is
amount = A ×
here A is annual saving and r1 is increase rate and r2 is return rate
1100000 = A ×
A = $8079.45
so
proportion of salary is
proportion of salary = 13.24%
so percentage of your salary save each year is 13.24%