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ONLY SOLVE C,D,F WITHOUT USING SHORTCUTS AND EXCEL PLEASE SOLVE USING FORMULA MANUALLY.

ONLY SOLVE C,D,F WITHOUT USING SHORTCUTS AND EXCEL PLEASE SOLVE USING FORMULA MANUALLY.

Personal Finance
Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter17: Retirement And Estate Planning
Section: Chapter Questions
Problem 4FPC
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ONLY SOLVE C,D,F WITHOUT USING SHORTCUTS AND EXCEL PLEASE SOLVE USING FORMULA MANUALLY.

blem 7.24. pay formula 25 Chaudhary Group is sponsoring 2030 retirement plan. Neeta is a senior manager of this group and her annual salary is Rs 600,000. She has to deposit 12 percent of her annual salary into this plan and her employer matches 50 percent of the first 5 percent of her earnings. Annual expected rate of return on the plan is 10 percent. Neeta is currently in the 25 percent tax bracket and the amount deposited to the plan is deductible from her taxable income. a. What is Neeta's contribution to the plan for the first year? b. What is the contribution of her employer to the plan for the first year? What is the tax saving on the contribution to the plan? What is her cost for the retirement plan? e. What is the total investment at year start? What is her one year return on this plan?
Transcribed Image Text:blem 7.24. pay formula 25 Chaudhary Group is sponsoring 2030 retirement plan. Neeta is a senior manager of this group and her annual salary is Rs 600,000. She has to deposit 12 percent of her annual salary into this plan and her employer matches 50 percent of the first 5 percent of her earnings. Annual expected rate of return on the plan is 10 percent. Neeta is currently in the 25 percent tax bracket and the amount deposited to the plan is deductible from her taxable income. a. What is Neeta's contribution to the plan for the first year? b. What is the contribution of her employer to the plan for the first year? What is the tax saving on the contribution to the plan? What is her cost for the retirement plan? e. What is the total investment at year start? What is her one year return on this plan?
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