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MUST BE DONE IN EXCEL, SHOW ALL FORMULAS AND CALCULATION PER AWNSER! 9. Retire early or not: Plan A: Retire at age 60 Plan B:
MUST BE DONE IN EXCEL, SHOW ALL FORMULAS AND CALCULATION PER AWNSER!
9. Retire early or not: Plan A: Retire at age 60 Plan B: Retire at age 65 Assume you are 25 years old now and you expect to live to age 82. Also assume your salary would reach $100,000 when you are 60 and will increase by 5% annually until age 65. You expect to have a pension of 60% of your annual income at the time of your retirement. (a) Assuming an interest rate of 3.1%, what should you invest monthly to reach your goal with both Plan A and Plan B? (b) Assuming the 5% annual salary increase happens throughout your career, deter- mine your annual salary and your annual net income after making the contributions to each Plan for each of the next 10 years Step by Step Solution
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