Education homework help
You are now 30 years old, married and your significant other tells makes you promise you will only work until you are 60 years old. Your employer gives you a contract work $150,000 a year for 30 years. The employer give you two choices in retirement. 1. They will give you 2.5% a year for each year of employment times you salary level the time of retirement. 2, the employee will match your contribution of retirement and let it grow for 30 years in an guaranteed stock fund at 6% interest. In either case your contribution to the retirement fund is 6.5% of your salary.
How much of YOUR money will you have in your retirement at age 60
How much will your retirement be worth at the age of 60
If your plan is to live 25 years after retirement how much will you be able to get in retirement for each year under each plan
Which plan is better
You must show all your work in this calculation.