Case in Point Summary Exercise AMERICAN RIVER COLLEGE www.arc.losrios.edu Facts: . 1955: Founded . 2012: Over 36,000 students . 2013: Over 52% ethnically not white American River offers students a choice of more than 70 different majors of study, including biology, engineering, hospitality management, mortuary science, collision re- pair, business, and even fire technology. College personnel work closely with students to help them find financial aid. Amazingly, about one-half of the students at American River College receive some kind of financial aid. Roman Rodriguez had 3 years of experience when he went to work in Human Resources at American River College at a salary of $42,000. He began work on his 30th birthday. The college matches his contributions to his retirement plan up to 8% of his salary. 1. Rodriguez decides to contribute a total of 10% of his salary to his retirement plan. So, 1. American River contributes 8% and he contributes a full 10% of his salary. Find the total annual contribution into the retirement plan.2. For planning purposes. Rodriguez assumes he will work at American River until he is 60 and believes he can earn 8% per year in a global stock fund. Assume the contributions continue at the same level as in Exercise l and estimate the future value. 3. Assume that there are 486 faculty fulltime faculty who have been at American River College for more than 8 years. if their average income is $62,940, nd the annual payroll. 4. Based on the annual payroll in Exercise 3. estimate the annual contributions American River must make into retirement plans if all faculty contribute at least 8% of their salary into their own plans. 5. Assume that a wealthy donor has agreed to give American River College $250,000 per year for the next 5 years. Find the present value of these gifts. assuming 6% per year. 6. American River has decided to build a new classroom building and will need $8.250.000 in 7 years. They decide to make contributions into a sinking fund at the end of each 6-month period. Find the payment needed if funds earn 5% per year. 6