Upon graduating with an MBA, Jamie received a job offer as an associate from a local private equity

firm. Her base salary is $$92,450,$ which is paid at the end of each year. In addition, she receives a

sign$-$on bonus of $$28,760$ immediately. She expects her salary to be adjusted annually for the cost$-$

of$-$living increases at a rate of $3\mathrm{.}85\%$ per annum. She also expects to receive annual bonuses of

$12\mathrm{.}75\%$ of her annual salary at the end of each year. She plans to retire in $28$ years and start traveling

the world afterward. The expected return on retirement funds is $7\mathrm{.}43\%$ per year. Ignore taxes. Use

annual compounding.

A$.$ Jamie plans to save for a downpayment for the house. She plans to invest her sign$-$in bonus

and annual bonuses for $6$ years. By the end of six years, how much is available for a house

downpayment?

B$.$ Jamie saves $7\mathrm{.}5\%$ of her salary and $100\%$ of her annual bonuses for retirement in a $401$K

account. Assuming that she can only contribute her entire annual bonus towards retirement

savings after she purchases her house in $6$ years, by the time she retires $(28$ years from now$),$

what will the value of her $401$K account be$?$