4-85: Mark Johnson saves a fixed percentage of his salary at the end of each year. This year he saved $2000. For the next 5 years, he expects his salary to increase at an 6% annual rate, and he plans...

Extracted text: 4-85: Mark Johnson saves a fixed percentage of his salary at the end of each year. This year he saved $2000. For the next 5 years, he expects his salary to increase at an 6% annual rate, and he plans to increase his savings at the same 6% annual rate. He invests his money in the stock market. Thus, there will be six end-of-year investments (the initial $2000 plus five more). Solve the problem using the geometric gradient factor. How much will the investments be worth at the end of 6 years if they increase in the stock market at a 7% annual rate?