Use the Table Below to Answer the Following Question(s) -What Will Be the Amount of Employee Contribution to Retirement

question 13

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.
$$\begin{array}{l}\text { Retirement Plan Model for Sheila }\\\begin{array} { | l | l | } \hline \text { Data } & \\\hline \text { Retirement Contribution ( percent of salary) } & \\\hline \text { Employer Match } & 9 \text { percent } \\\hline \text { Annual Salary Increase } & 32 \text { percent } \\\hline \text { Annual Return on Investment } & 5 \text { percent } \\\hline & 7 \text { percent } \\\hline\end{array}\end{array}$$
-What will be the amount of employee contribution to retirement plan when Sheila is aged 38?

• A)$7,441.88
• B)$7,813.97
• C)$24,450
• D)$2381.40

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