Answer:
After 40 years of working, and savings 10% of his salary per year, and his retirement account earning a 9% compounding interest rate, Matt should have $3,984,402 in his retirement account.
Explanation:
The reason this number is so high, is that his base salary is quite high ($60,000) and it increases by 5% each year during 40 years. At the end of year 40, his salary should be $402,85 per year. The 9% compounding interest rate is also high, it means that every dollar invested next year will generate $31.41 dollars in 40 years.
I solved this question by preparing a table on excel.
