3. Your new job offers a savings plan that pay 1.00% in interest each month. You can't participate in the plan, however, until you have 8 yrs. with the company. At that time you will start saving $150 a month for the next 24 years.

How much will you have in this savings account in 32 years?

Another perk of your new job is that, after 8 yrs. With the company, you will also get an increase of $125 in your monthly salary. Assume you would stay with the company for 24 more years after getting the salary incr. and that you discount at 1.00 % each month.

What is this salary increase worth to you today?