Question: A 3 5 year 3 5 - year - old old employee who has just been hired will contribute part of their paycheck monthly to
A yearyearold old employee who has just been hired will contribute part of their paycheck monthly to a k The employee's starting salary is $ a year. An annual raise of is given to every employee each year. The employee plans to work for the company until they retire at age and start withdrawing from their k of their ending salary each year they are retired. The employee expects to be retired for years. They will withdraw the money in monthly installments. The k earns per year compounded monthly. a How much will the employee's final salary be at age Round to two decimals. b Using your answer to part a how much will the employee withdraw each month of their retirement? Round to two decimals. c Using your answer to part b how much does the employee needs to save in their k before they retire at age Round to two decimals. d Using your answer to part c how much do the employee's monthly k contributions need to be Round to two decimals. e Using your answers to part c and d how many years would it take the employee to save the money they need to retire if they doubled their monthly contributions? Round to two decimals.parts
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