In order to vest in the pension plan, June must work at her job for 10 years and contribute 2% of...
In order to vest in the pension plan, June must work at her job for 10 years and contribute 2% of her salary to the pension fund.
a) If she does works at least 10 years, she will receive a percentage of the last year before she retires salary. Assume the amount she receives each year in retirement is 40% of her final salary and is guaranteed to be paid out each year until death.
b) If she does not stay the full 10 years, she will be refunded the amount she has contributed, plus 1% interest.
CALCULATE THE RETURNS FOR THE SCENARIOS.
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In order to vest in the pension plan, June must work at her job for 10 years and contribute 2% of...
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