Alec, Daniel, William, and Stephen decide today to save for retirement. Each person wants to retire by age 70 and puts $9,200 into an account earning 9% compounded annually. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) Required: Calculate how much each person will have accumulated by the age of 70. Answer is complete but not entirely correct. Accumulated Current Person Age Initial Investment Investment by Retirement (age 70) Alec 60 $ 9,200 $ 21,804.00 Daniel 50 9,200 51,520.00 William 40 9,200 122,084.00x Stephen 30 9,200 288,972.00

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A:

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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.