A self-employed person deposits $4,000 annually in a retirement account (called a Keogh or H.R. 10 plan) that earns 7 percent. Use Appendix A and Appendix C to answer the questions. Round your answers to the nearest dollar. How much will be in the account when the individual retires at the age of 65 if the savings program starts when the person is age 50? $   How much additional money will be in the account if the saver defers retirement until age 70 and continues the contributions? $   How much additional money will be in the account if the saver discontinues the contributions at age 65 but does not retire until age 70

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Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.