Homework help.

bob is enrolled in a defined contribution plan in which the employer contributes $8,000 each year. bob is earning $80,000 this year and his tax rate is 30 percent (which is not expected to change). Assume that the before- tax rate of return is 8 percent.

1. (10%) What is the additional amount of funds that Thomas will have when he reaches retirement in 10 years as a result of this year's service?

2. (20%) Suppose that Bob employer is planning to reduce half of their contribution to the defined contribution plan. Assume that Bob would like to keep his retirement funds the same as they would have been with the defined contribution plan. If Bob's only opportunity to save for retirement is in a nonqualified savings plan (no tax benefits), how much would bob need to receive in additional salary (which he would then save) to achieve his objective?