Use the Table Below to Answer the Following Questions) -Calculate the Employer Contribution in Sheila's Fourth Year at Simsin

question 26

Multiple Choice

Use the table below to answer the following questions) .
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. $\begin{array} { |l|l| } \hline \text {Retir ement Plan Model for Sheila }\\\hline\\\hline \text { Data }\\\hline\\\hline \text { Retirement Contribution percent of salary) } & 9 \text { percent } \\\hline \text { Employer Match } & 32 \text { percent } \\\hline \text { Annual Salary Increase } & 5 \text { percent } \\\hline \text { Annual Return on Investment } & 7 \text { percent } \\\hline\end{array}$

-Calculate the employer contribution in Sheila's fourth year at Simsin.

• A) $546.98
• B) $703.26
• C) $2,500.47
• D) $2,160

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