Your employer contributes $75 a week to your retirement plan. Assume that you work for your employer for another 20 yrears and that the applicable discount rate is 7.5 percent. Given these assumptions, what is this employee benefit worth to you today?
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Your employer contributes $75 a week to your retirement plan. Assume that you work for your employer for another 20 yrears and that the applicable discount rate is 7.5 percent. Given these assumptions, what is this employee benefit worth to you today?
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- Your employer contributes $50 a week to your retirement plan. Assume that you work for your employer for another 20 years and that the applicable discount rate is 9 percent. Given these assumptions, what is this employee benefit worth to you today?Your employer contributes 50 a week to your retirement plan. Assume that you work for your employer for another sixteen years and that the applicable discount rate is 6.5 %,compounded weekly. Givn these assumptions, what is this employee benefit worth to you today? 24135.99 25852.63 24218.04 25920.55 21574.68Your employer contributes $50 a week to your retirement plan. Assume that you work for your employer for another thirty years and that the applicable discount rate is 9 percent. Given these assumptions, what is this employee benefit worth to you in 30 years?
- 1. Assume that you begin saving 3% of your total income in an employer-provided retirement plan at work. How long will it take for you to be saving at least 20% of your income if your employer provides a 4% wage increase yearly and you save half of each year's increase? 2. Based on your calculations from part a. how much will you be saving (using the end-of- year savings rate) over the next 10 years if you earn $30,000 this year?Assume that you begin saving 3% of your total income in an employer-provided retirement plan at work. Each year, your income increases by 4%. As a result, you increase the percentage of your income you devote to your retirement plan by 2%. How long will it take for you to be saving at least 20% of your income? (Assume no taxes.) Based on your calculations from part a, how much will you be saving (using the end-of-year savings rate) over the next 10 years if you earn $30,000 this year? What is an alternative approach you might recommend for this situation? Why might it be better?0. Assume that upon graduation you make$63,500per year. What are the legally required costs for Social Security, Old-age, Survivors, and Disability Insurance, \& Medicare for the firm you work for in both dollar values and percentages? How much will you have to pay yourself? How much would you pay if you were self-employed earning the same amount?
- You have just made your first $5,000 contribution to your individual retirement account. Assuming you earn an annual rate of return of 9.75 percent and make no additional contributions, what will your account be worth when you retire in 45 years?Use the information for the question(s) below. Assume that you are 30 years old today and that you are planning on retirement at age 65. Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. Assume that the rate of interest is 7%. The present value (at age 30) of your retirement savings is closest to: O A. $87,000. OB. $46,600. OC. $75,230. O D. $108,000.Mena has year-to-date (YTD) earnings of $125,200. If her next paycheck put her above the wage base limit of $128,400, what will be the amount of the social security deduction at 6.2 %? a. $788.76 b. $128.20 c. $198.40 d. $204.60
- You have just made your first $4,500 contribution to your individual retirement account. Assume you earn an annual return of 11.3 percent and make no additional contributions. What will your account be worth when you retire in 39 years?A self employed person deposit $1,250 annually in a retirement account that earns 5.5 percent. What will be the account balance at age 62 if the savings program starts when the individual is age 50? How much additional money will be in the account if the saver defers retirement until age 66 and continue the annual contribution until then? How much additional money will be in the account if the saver discontinues the contributions at age 62, but let's it build up until retirement at age 66?You have just made your first $5461 contribution to your retirement account. Assume you earn a return of 8.8 percent per year and make no additional contributions. What will your account be worth when you retire in 45 years?