Question

This question uses matlab R2018a

Retirement.m is ->

function [MyCont, CompCont, Total] = retirement(salary)

if salary <= 30000
MyCont = 0.1 * salary;
CompCont = 0.1* salary;
elseif salary <= 60000
MyCont = 0.1*salary;
CompCont = 0.1 * 30000 + 0.05 * (salary - 30000);
elseif salary <= 100000
MyCont = 0.1*60000 + 0.08 * (salary-60000);
CompCont = 0.1*30000 + 0.05*30000;
else
MyCont = 0.1*60000 + 0.08 * 40000;
CompCont = 0;
end

Total = MyCont + CompCont;
  
  

Many large companies encourage their employees to contribute a portion of their salary toward their 401(K) savings plan by matching employees' contribution to a certain percentage. Saving is tax-free before it is actually used. Hence, government puts a maximum pre-tax money that could be saved in a 401(K) plan. Following table show the percentage of tax-free salary that each employee can save based on the salary tiers, and the company's contribution toward the saving Salary range Max you can save tax free Maximum that company will match 10% 10% of the first $30,000 and 5% Up to $30,000 10% Between $30,000 and $60,000 10% of the amount above $30,000 Between $60,000 and $100,000 | 10% of the first $60,000 and 8% | 10% of the first $30,000 and 5% of the amount above $60,000 of the amount between $30,000 and $60,000; nothing for the remainder above $60,000 10% of the first $60,000 and 896 | Nothing-highly compensated of the amount between $60,000 employees are exempt from and $100,000; nothing on the this plan and participate in amount above $100,000 Above $100,000 stock options instead Write a function (called "retirement") that takes your salary as input, and return savings in your 401(K) in terms of your contribution, your company's contribution, and total annual savings. (10 points) I. Use the function retirement.m in a “while loop" to determine how many years you should work with a starting salary of $45,000, given the fact that you are entitled to a raise of 1% in salary each year, to save $50,000 in your 401(K) savings plan. (10 points) Hint: You would need to define the threshold of while loop based on the total of $50,000 savings. You will also need a counter variable defined before while loop, which in turn increases (counter counter 1) each time the loop goes through.

Answer 1

MATLAB code:

main file:

clc;
close all;
clear all;

salary = 45000;
counter = 0;savings = 0;
while(savings<50000)
[MyCont, CompCont, Total] = retirement(salary);
savings = savings+Total;
salary = salary*1.01;% increase in salary by 1%.
counter = counter+1;
end

called file:

function [MyCont, CompCont, Total] = retirement(salary)

if salary <= 30000
MyCont = 0.1 * salary;
CompCont = 0.1* salary;
elseif salary <= 60000
MyCont = 0.1*salary;
CompCont = 0.1 * 30000 + 0.05 * (salary - 30000);
elseif salary <= 100000
MyCont = 0.1*60000 + 0.08 * (salary-60000);
CompCont = 0.1*30000 + 0.05*30000;
else
MyCont = 0.1*60000 + 0.08 * 40000;
CompCont = 0;
end

Total = MyCont + CompCont;

Result:

>> counter

counter =

6

Number of years to get to the savings figure is 6 years