Please explain how you got the answer.

or their employees. He lets you know that you must choose one by your start date (1 week away) and hat once you make your decision, it is final and cannot be changed for the rest of your time at AEW. fter you stare off in the distance pondering your life for a moment, you tell Mr. Friedman that you will nave a decision in a week and that it will be a very well informed decision as you studied Pensions in ollege. Mr. Friedman is excited and sends you the below information to help you make your decision: he plans at AEW are structured as follows: - Defined Contribution Plan: AEW will contribute 7% of your beginning year salary at the end of each year - Defined Benefit Plan: AEW will calculate your benefit using the following formula - 1.2% years of service x salary at retirement - AEW assumes your salary will rise about 3% each year (assume you will receive raise at the end of each year of employment) - AEW assumes an interest rate of 6% - AEW's actuary assumes you will work for 40 years and have a retirement period of 20 years 1. You were hired at the beginning of 2022 at a salary of $60,000. If you choose AEW's defined benefit plan and projections hold true: Note, you will work for 40 years (i.e. years of service will be 40 and you will use an n of 40 when determining the future salary), then have a retirement period of 20 years. (Show your work) a. What will be your annual retirement pay? b. What is the present value of your retirement annuity as of the anticipated retirement date (end of 2061)? 2. Suppose instead that you choose the defined contribution plan. Assuming that the rate of increase in salary is the same as AEW assumes and that the rate of return on your retirement plan assets will be 6% compounded annually: \%)? Note: For this section you must fill out the "Requirement 2 " worksheet in the Excel Workbook. I have began the worksheet for you. Also, refer back to installment notes, on how to calculate an amount of a payment (retirement period is unchanged from requirement 1). a. What will be the future value of your plan assets as of the anticipated retirement date (end of 2061)? b. What will be your annual retirement pay (assuming continuing investment of remaining assets at 6\%)? Additional Note: The final row in Excel for Requirement 2 will show a different final salary than Requirement 1 as it utilizes what the salary was throughout the year, as there would presumably be one more year end raise after money was earned on the balance. 3. Review your answers to \#1 and \#2. In a one-page (double spaced) response, describe the two types of plans that exist (defined contribution and defined benefit) and with the facts presented above which option you would choose. In this description include some independent research and provide two reasons beyond just the amount you would receive. or their employees. He lets you know that you must choose one by your start date (1 week away) and hat once you make your decision, it is final and cannot be changed for the rest of your time at AEW. fter you stare off in the distance pondering your life for a moment, you tell Mr. Friedman that you will nave a decision in a week and that it will be a very well informed decision as you studied Pensions in ollege. Mr. Friedman is excited and sends you the below information to help you make your decision: he plans at AEW are structured as follows: - Defined Contribution Plan: AEW will contribute 7% of your beginning year salary at the end of each year - Defined Benefit Plan: AEW will calculate your benefit using the following formula - 1.2% years of service x salary at retirement - AEW assumes your salary will rise about 3% each year (assume you will receive raise at the end of each year of employment) - AEW assumes an interest rate of 6% - AEW's actuary assumes you will work for 40 years and have a retirement period of 20 years 1. You were hired at the beginning of 2022 at a salary of $60,000. If you choose AEW's defined benefit plan and projections hold true: Note, you will work for 40 years (i.e. years of service will be 40 and you will use an n of 40 when determining the future salary), then have a retirement period of 20 years. (Show your work) a. What will be your annual retirement pay? b. What is the present value of your retirement annuity as of the anticipated retirement date (end of 2061)? 2. Suppose instead that you choose the defined contribution plan. Assuming that the rate of increase in salary is the same as AEW assumes and that the rate of return on your retirement plan assets will be 6% compounded annually: \%)? Note: For this section you must fill out the "Requirement 2 " worksheet in the Excel Workbook. I have began the worksheet for you. Also, refer back to installment notes, on how to calculate an amount of a payment (retirement period is unchanged from requirement 1). a. What will be the future value of your plan assets as of the anticipated retirement date (end of 2061)? b. What will be your annual retirement pay (assuming continuing investment of remaining assets at 6\%)? Additional Note: The final row in Excel for Requirement 2 will show a different final salary than Requirement 1 as it utilizes what the salary was throughout the year, as there would presumably be one more year end raise after money was earned on the balance. 3. Review your answers to \#1 and \#2. In a one-page (double spaced) response, describe the two types of plans that exist (defined contribution and defined benefit) and with the facts presented above which option you would choose. In this description include some independent research and provide two reasons beyond just the amount you would receive