I plan to be earning $175,000 when I retire in 30 years. I have been offered a job that guarantees an annual salary increase of 3.6% per year. What salary should I ask for in order to meet my retirement goals?

To determine the salary you should ask for, we need to find the present salary that will grow to $175,000 in 30 years with a guaranteed annual increase of 3.6%. This can be calculated using the formula for compound growth:

\[
FV = PV \times (1 + r)^t
\]

Where:
- $FV$ is the future value ($175,000),
- $PV$ is the present value (the salary you should ask for),
- $r$ is the annual growth rate (3.6% or 0.036),
- $t$ is the time in years (30 years).

Rearranging the formula to solve for $PV$ (the salary you should ask for):

\[
PV = \frac{FV}{(1 + r)^t}
\]

Let's calculate this now.The salary you should ask for in order to meet your retirement goal of earning $175,000 in 30 years, with a 3.6% annual increase, is approximately **$60,568**.

Would you like more details or have any further questions?

Here are 5 related questions you might find interesting:
1. How can inflation affect the value of my future salary?
2. What are the implications of compounding on long-term salary growth?
3. How does a higher or lower annual salary increase affect the outcome?
4. What strategies can I use to negotiate a salary offer effectively?
5. How do different retirement savings strategies complement salary growth?

**Tip**: It's always a good idea to consider both salary growth and cost-of-living increases when planning long-term financial goals.

Find out how to calculate the starting salary needed to reach a retirement goal of $175,000 in 30 years, given an annual salary increase of 3.6%. This step-by-step guide uses compound growth formulas and is suitable for high school students or anyone interested in financial planning.

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