FIN 419 ASSIST Perfect Education/fin419assist.cofi FIN 419 ASSIST Perfect Education/fin419assist.cofi | Page 20

and puts away $4,100 every year for the last 20 year 0 employment.
All tree plans guarantee an annual growth rate of 11%.
a.
Which plan should you choose if you plan to work at the
Planet for 40 years ?
b.
Which plan should you choose if you plan to work at the
Planet for only the next 30 years ?
c.
Which plan should you choose if you plan to work at the
Planet for only the next 20 years ?
d.
Which plan should you choose if you plan to work at the
Planet for only the next 10 years ?
e.
What do the answers in parts (a) through (d) imply about
savings ?
P4-5
Future Value. YOU are a new employee with the metro daily
planet. The planet offers three different retirement plans. Plans 1
starts the first day of work and puts $1,100 away in your retirement
acc at the end of every year for 40 years. Plan 2 starts after 10 year
and puts away $2,100 every year for year. Plan 3 starts after 20 year
and puts away $4,100 every year for the last 20 year 0 employment.
All tree plans guarantee an annual growth rate of 11%.