Sammy Slick works for a company that allows him to contribute up to 10% of his earnings into a tax-deferred savings plan. The company matches a portion of the contributions its employees make based on the organization's financial performance. Although the minimum match is 25% of the employee's contributions and the maximum match is 100%, in most years the company match is about 50%. Sammy is currently 30 years old and makes $55,000. He wants to retire early at age 55. He expects his salary to increase in any given year to be at least 2% per year, at most 6%, and most likely 3%. The funds contributed by Sammy and his employer are invested in mutual funds. Sammy expects the annual return on his investments to vary according to a normal distribution with a mean of 12.5% and standard deviation of 2%. (Use 2,000 trials. Note that the investment returns can be generated via Excel's NORMINV(RAND(),0.125,0.02) function. This allows for 50 PSI functions to accommodate the remaining uncertain cells. Use half of the funds contributed by Sammy and his employer when calculating simple interest.)

(a) If Sammy contributes 10% of his income to this plan, how much money (in dollars) could he expect to have at age 55? (Round your answer to the nearest whole number.)

(b)Suppose Sammy makes 10% contributions to this plan for 8 years, from age 30 to 37, and then stops contributing

How much of his own money (in dollars) would he have invested at age 55? (Round your answer to the nearest whole number.)

How much money (in dollars) could he expect to have at age 55? (Round your answer to the nearest whole number.)

(c) Now suppose Sammy contributes nothing to the plan his first 8 years and then contributes 10% for 17 years from age 38 to age 55.

How much of his own money (in dollars) would he have invested at age 55? (Round your answer to the nearest whole number.)

How much money (in dollars) could he expect to have at age 55? (Round your answer to the nearest whole number.)

(d) What do you learn from Sammy's example? Choose one of the following

invest later / it doesn't matter when you invest / invest early