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You have been hired as a benefit consultant by Jean Honore, the owner of Crane Angels. She wants to establish a retirement plan for herself
You have been hired as a benefit consultant by Jean Honore, the owner of Crane Angels. She wants to establish a retirement plan for herself and her employees. Jean has provided the following information:
The retirement plan is based upon salary for the last year before retirement and will provide of Jeans lastyear annual salary and of the lastyear salary for each employee.
The plan will make annual payments at the beginning of each year for years from the date of retirement.
Jean wishes to fund the plan by making annual deposits beginning January
Invested funds will earn compounding annually.
Information about plan participants employees and Jean as of January is as follows:
Jean Honore owner: Current annual salary of $ with an estimated retirement date of January
Colin Davis flow manager: Current annual salary of $ with an estimated retirement date of January
Anita Baker Sales clerk: Current annual salary of $ with an estimated retirement date of January
Gavin Bryars Parttime bookkeeper: Current annual salary of $ with an estimated retirement date of January
It is determined that the annual retirement benefit for each employee is the following:
Jean Honore $
Colin Davis $
Anita Baker $
Gavin Bryars $
With all the above information solve the following two questions:
What amount must be on deposit at the end of years to ensure that all the benefits will be paid? round factor values to decimal places and the final answer to decimal places
What is the amount of each annual deposit Jean has to make to the retirement plan? Round factor values to decimal places and final answer to decimal places
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