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An employee, at a 4 percent discount rate, what is the Present Value of the employee and employers future contributions (combined) to the Social Security
An employee, at a 4 percent discount rate, what is the Present Value of the employee and employers future contributions (combined) to the Social Security program over the course of her career with this company. Assume that her salary grows 3 percent each year, that Social Security tax rates (6.2% Tax rate for Employees and Employers) remain constant, and that the wage base grows 3 percent per year. Her current salary is $110,000. She is 32. What is the present value of the employees and employers future contributions combined?
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