You have been hired as a benefit consultant by Jean Honore, the owner of Sweet Angels. She wants to establish a retirement plan for herself and her three employees. Jean has provided the following information. The retirement plan is to be based upon annual salary for the last year before retirement and is to provide 50% of Jean's last-year annual salary and 40% of the last-year annual salary for each employee. The plan will make annual payments at the beginning of each year for 20 years from the date of retirement. Jean wishes to fund the plan by making 15 annual deposits beginning January 1, 2025. Invested funds will earn 11% compounded annually. Information about plan participants as of January 1, 2025, is as follows. Jean Honore, owner: Current annual salary of $49,990; estimated retirement date January 1, 2050. Colin Davis, flower arranger: Current annual salary of $37.190; estimated retirement date January 1, 2055. Anita Baker, sales clerk: Current annual salary of $20,900; estimated retirement date January 1, 2045. Gavin Bryars, part-time bookkeeper: Current annual salary of $15,790; estimated retirement date January 1, 2040. In the past, Jean has given herself and each employee a year-end salary increase of 4%. Jean plans to continue this policy in the future. (a) Click here to view factor tables. Based upon the above information, what will be the annual retirement benefit for each plan participant? (Hint: Jean will receive raises for 24 years.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, eg. 458,581) Jean Honore Colin Davis Anita Baker Gavin Bryars Annual Retirement Benefit $ eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer
You have been hired as a benefit consultant by Jean Honore, the owner of Sweet Angels. She wants to establish a retirement plan for herself and her three employees. Jean has provided the following information. The retirement plan is to be based upon annual salary for the last year before retirement and is to provide 50% of Jean's last-year annual salary and 40% of the last-year annual salary for each employee. The plan will make annual payments at the beginning of each year for 20 years from the date of retirement. Jean wishes to fund the plan by making 15 annual deposits beginning January 1, 2025. Invested funds will earn 11% compounded annually. Information about plan participants as of January 1, 2025, is as follows. Jean Honore, owner: Current annual salary of $49,990; estimated retirement date January 1, 2050. Colin Davis, flower arranger: Current annual salary of $37.190; estimated retirement date January 1, 2055. Anita Baker, sales clerk: Current annual salary of $20,900; estimated retirement date January 1, 2045. Gavin Bryars, part-time bookkeeper: Current annual salary of $15,790; estimated retirement date January 1, 2040. In the past, Jean has given herself and each employee a year-end salary increase of 4%. Jean plans to continue this policy in the future. (a) Click here to view factor tables. Based upon the above information, what will be the annual retirement benefit for each plan participant? (Hint: Jean will receive raises for 24 years.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, eg. 458,581) Jean Honore Colin Davis Anita Baker Gavin Bryars Annual Retirement Benefit $ eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:You have been hired as a benefit consultant by Jean Honore, the owner of Sweet Angels. She wants to establish a retirement plan for
herself and her three employees. Jean has provided the following information. The retirement plan is to be based upon annual salary
for the last year before retirement and is to provide 50% of Jean's last-year annual salary and 40% of the last-year annual salary for
each employee. The plan will make annual payments at the beginning of each year for 20 years from the date of retirement. Jean
wishes to fund the plan by making 15 annual deposits beginning January 1, 2025. Invested funds will earn 11% compounded annually.
Information about plan participants as of January 1, 2025, is as follows.
Jean Honore, owner: Current annual salary of $49,990; estimated retirement date January 1, 2050.
Colin Davis, flower arranger: Current annual salary of $37.190; estimated retirement date January 1, 2055.
Anita Baker, sales clerk: Current annual salary of $20,900; estimated retirement date January 1, 2045.
Gavin Bryars, part-time bookkeeper: Current annual salary of $15,790; estimated retirement date January 1, 2040.
In the past, Jean has given herself and each employee a year-end salary increase of 4%. Jean plans to continue this policy in the future.
(a)
Click here to view factor tables.
Based upon the above information, what will be the annual retirement benefit for each plan participant? (Hint: Jean will receive
raises for 24 years.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, eg. 458,581)
Jean Honore
Colin Davis
Anita Baker
Gavin Bryars
Annual Retirement Benefit
$
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