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This Question: 1 pt 4 of 20 (3 complete) This Test: 20 pts possible ver You have just turned 30 years old, have just received

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This Question: 1 pt 4 of 20 (3 complete) This Test: 20 pts possible ver You have just turned 30 years old, have just received your MBA and have accepted your first job. Now you must decide how much money to put into your retirement plan You are required to specify a fixed percentage of your salary that you want to contribute Assume that your starting salary is $76,000 per year and it will grow 1.8% per year until you retire. Every dollar in the plan earns 6.7% per year. You cannot make withdrawals until you retire on your sixty-fifth birthday. After that point, you can make withdrawals as you see fit. You decide that you will plan to live to 100 and work until you turn 65. You estimate that to live comfortably in retirement you will need $96,000 per year starting at the end of the first year of retirement and ending on your 100th birthday. What percentage of your income do you need to contribute to the plan every year to fund your retirement income? The fraction of your salary that you should save is % (Round to two decimal places.) NE mis Question: 1 pt 5 of 20 (3 complete) This Test: 20 pts possible After reading the Novy-Marz and Rauh paper regarding unfunded pension liabilities you decide to compute the total obligation of the state that you live in. After some research you determine that your state's promised pension payments amount to $1.8 billion dollars annually, and you expect this obligation to grow at 2.3% per year. You determine that the riskiness of this obligation is the same as the riskiness of the state's debt. Based on the pricing of that debt you determ is 2.6% per annum. Currently based on actuarial calculations using 8 1% as the discount rate, the plan is neither over nor underfunded the value of the liabilities exactly matches the value of the assets. What is the extent of the true unfunded liability? The present value of the unfunded liability is $ billion (Round to two decimal places.)

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