retirement options: at age 25, you start work for a company and are offered two retirement options. Retirement option 1: when you retire, you will receive a lump sum of $30,000 for each year of service. Retirement option 2: when you start to work, the company deposits $15,000 into an account that pays a monthly interest rate of 1%, and interest is compounded monthly. When you retire, you get the balance of the account. Which option is better if you retire at age 65? Which option is better if you retire at age 55?

retirement options: at age 25, you start work for a company and are offered two retirement options. Retirement option 1: when you retire, you will receive a lump sum of $30,000 for each year of service. Retirement option 2: when you start to work, the company deposits $15,000 into an account that pays a monthly interest rate of 1%, and interest is compounded monthly. When you retire, you get the balance of the account. Which option is better if you retire at age 65? Which option is better if you retire at age 55?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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