Consider a company that recruited 500 20- year-olds on employment date. The base salary for each of them is 100,000, which grows annually by 2.1% .Each employee, as usual, must contribute to their retirement plan, which will be when they reach 65 years of age, from then on. the pension operator promises to pay them 50 thousand a month. How much should the monthly contributions of each of the 500 employees be in order to be entitled to the pension? How much does all of these contributions represent for the company? Assume an effective annual interest rate of 5% and that you are going to live to age 85.

Consider a company that recruited 500 20- year-olds on employment date. The base salary for each of them is 100,000, which grows annually by 2.1% .Each employee, as usual, must contribute to their retirement plan, which will be when they reach 65 years of age, from then on. the pension operator promises to pay them 50 thousand a month. How much should the monthly contributions of each of the 500 employees be in order to be entitled to the pension? How much does all of these contributions represent for the company? Assume an effective annual interest rate of 5% and that you are going to live to age 85.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter2: Career Planning

Section: Chapter Questions

Problem 3DTM

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