Assume you are 25 and earn ​$29 comma 00029,000 per​ year, never expect to receive a​ raise, and plan to retire at age 55. If you invest 5 percent of your salary in a​ 401(k) plan returning 1111 percent​ annually, and the company provides a​ $0.50 per​ $1.00 match on your contributions up to 3 percent of​ salary, what is the estimated future value of your​ 401(k) account? Once you​ retire, how much can you withdraw monthly if you want to deplete your account over 3030 ​years?

Q: Consider a retirement financial plan where you begin contributing at the age of 25. In this plan you…

A: Discounting: Discounting is the process of determining a future sum of money's present value. The…

Q: Assume that you begin saving 3% of your total income in an employer-provided retirement plan at…

A: The savings of the employee are increasing by fix rate of 2% each year, while the income is…

Q: Your employer offers a 401(k) plan with a 25% match, and you set a goal of retiring in 25 years with…

A:

Q: You just graduated and started your new job. Your starting salary is $80,000/year. Your employer's…

A: Let's examine each stage in more detail:  If you make no contributions, how much ($) will your…

Q: You want to retire exactly 35 years from today with $1,990,000 in your retirement account. If you…

A: Monthly deposits are the amount of money kept aside that earns a defined rate of interest for a…

Q: Your employer offers a 401(k) plan with a 23% match, and you set a goal of retiring in 34 years with…

A: Time value of money concept is used to determine the present and future value of money using…

Q: You just received $333,000 from an insurance settlement. You have decided to set this money aside…

A: given, pv =$333,000 n= 27 years n= 8.99%

Q: An individual wants to retire in 25 years and requires $300,000 in savings at that time. The…

A: We need to use RATE function in excel to calculate annual rate of interest on deposit.The formula is…

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

Q: You want to retire exactly 35 years from today with $2,080,000 in your retirement account. If you…

A: An annuity refers to a series of equal cash flows received or paid at regular intervals for a…

Q: 129,000 annual income. Your company matches 75 percent of the first 10 percent of your earnings. You…

A: 401(K) is one of the profit sharing plan in which there is contribution from employee and also…

Q: You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 25 and…

A: Your annual investment, PMT = $ 1,500    Starting age = 25Number of Years, n = 15Annual Interest…

Q: A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10…

A: The value of current asset for the future date based on the growing interest will be known as the…

Q: Suppose you plan to retire in 40 years.  If you make annual contributions of $13,000 into your…

A: The future value refers to the value of all amount accumulated at the regular intervals for a…

Q: You just graduated and started your new job. Your starting salary is $80,000/year. Your employer's…

A: d)Time period (n) =40 yearsRate of interest (I) =8% p.aAnnual Contribution = $8000Total amount at…

Q: 1) Sabrina waits to start saving for retirement until age 35. If she saves the same $8000 each year…

A: Annual saving (P) = $8000 Period from 35th year to 65th year (n) = 30 Interest rate (r) = 7.00%

Q: You have $10,000 in your 401(k) at work. You expect to retire in 35 years. How much will you have in…

A: The concept of time value of money will be used here. As per the concept of time value of money any…

Q: Your employer automatically puts 5 percent of your salary into a 401(k) retirement account each…

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: 0% match on your investment to a 401k retirement plan. If you decide to contribute a monthly amount…

A: The given problem can be solved using FV function in excel. FV function computes amount balance in…

Q: ow much will you have in your 401(k) plan upon retirement? Assume one annual contribution at the end…

A: The formula for the 401(k) plan is :-Total account value(TAV)=

Q: Today you turn 25. At the age of 60 you want to retire with $3 million in your retirement account.…

A: Future value of annuity = C x [( 1 +r)n-1 / r ]Future value of annuity= 3x106 =…

Q: 1. Assume that you begin saving 3% of your total income in an employer-provided retirement plan at…

A: An "income growth strategy" refers to a deliberate plan or approach aimed at increasing one's…

Q: Your employer automatically puts 10 percent of your salary into a 401(k) retirement account each…

A: If the amount of contribution incurred by a person increases, then it is known as growing annuity.…

Q: Use Excel to solve the following problem. Assume that you are 39 years old planning for your future…

A: Let's say we save an amount M every month. Interest rate = 6% per annumHere, a period is a monthR =…

Q: Emily is trying to decide between investing $1,000 or $1,500 at the beginning of each year for the…

A: Future value of money is the amount of deposit done and the amount of compounded interest…

Q: company sponsors a 401(k) plan into which you deposit 10 percer nt of percent of the first 10…

A: 401(K) is one of the profit sharing plan in which there is contribution from employee and also…

Q: Second Best Insurance company is advertising a new product to retirees looking to invest their…

A: NPV refers to net present value. It is an important capital budgeting tool. Essentially NPV is the…

Q: You save $800 a year into a 401(k) account that you invest in a mutual fund earning 9% per year.…

A: Given, Amount saved every year is $800 Rate is 9% Number of years is 25.

Q: A 40-year-old woman decides to put funds into a retirement plan. She can save $1,000 a year and earn…

A: We need to calculate the persent value of annuity  by using this formula.    PV of annuity =CF*…

Q: Assume you are 25 and earn ​$31 comma 00031,000 per​ year, never expect to receive a​ raise, and…

A: Future value:Future value is the expected value of a sum of money at a specific time in the future,…

Q: In our prior example, you need to have about $4,000,000 in savings at the age of 60 to fund…

A: Present value is the concept in finance that suggests the worth of a future cash flow, assuming it…

Q: Find the value of your retirement account after 20 years Value = $

A: The future value is the estimated value of an investment that accounts for compound interest or…

Q: You just graduated and started your new job. Your starting salary is $60,000/year. Your employer's…

A: 1. **401(k) Future Esteem Calculation**:We utilized long-standing time esteem equation for an…

Q: You're looking forward to retiring in a few years, and you hope that you will have enough in your…

A: The concept of the time value of money states that the current worth of money is more than its value…

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.