Use the Table Below to Answer the Following Question(s) -What Will Be Sheila's Salary in Her Second Year of Joined

question 50

Multiple Choice

Use the table below to answer the following question(s) .
Sheila joined Simsin Tradings at the age of 36 with a starting salary of $75,000. She expects a salary increase of 5 percent every year. Her retirement plan requires her to pay 9 percent of her salary, while the company matches it at 32 percent. She expects an annual return of 7 percent on her retirement portfolio. Using a predictive model for Sheila's first five years, calculate the following, assuming that the salary increases at the same rate every year, and the return of interest does not change. $\begin{array}{|l|l|}\hline \text { Retirement Plan Model for Sheila } & \\\hline & \\\hline \text { Data } & \\\hline & \\\hline \text { Retirement Contribution (percent of salary) } & 9 \text { percent } \\\hline \text { Employer Match } & 32 \text { percent } \\\hline \text { Annual Salary Increase } & 5 \text { percent } \\\hline \text { Annual Return on Investment } & 7 \text { percent } \\\hline\end{array}$
-What will be Sheila's salary in her second year of work at Simsin?

• A) $81,750
• B) $82,688
• C) $78,750
• D) $ 75,000

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Definitions:

Parenting

The activity of raising and nurturing children with the goal of helping them develop physically, emotionally, socially, and intellectually.

Loving

Expressing or feeling deep affection, care, and attachment towards someone or something.

Ageism

Discrimination against people on the basis of age, particularly against older people.

Paid Labor Force

Individuals who are engaged in work for which they receive monetary compensation, contributing to the formal economy.