Tony is 28 years old and just received a job offer to work for a marketing firm in Waterloo Ontario. This is Tony's first job in Canada. The company that made Tony the offer, has a defined contribution pension plan for all employees and Tony is planning on joining. The pension is based on his salary and the employer matches contributions up to 6% of salary. If Tyrel's annual salary is $85843 a year and the pension contributions are made at the end of the year, what is the value of the pension plan if Tony can generate an annual rate of return equal to 7.37%. Assume Tony retires when he's 65 and makes year end contributions.

Answer rating: 100% (QA)

To calculate the value of Tonys pension plan at retirement we need to determine the annual pension c... View the full answer