Example Salary Assumption Contribution % Contribution Match Total FV Defined Contribution 1 $75,000.00 6.00% $4,500.00 $2,625.00 $7,125.00 $36,634.34 2 $78,000.00 6.00% $4,680.00 $2,730.00 $7,410.00 $34,953.86 Salary Growth 3 $81,120.00 6.00% $4,867.20 $2,839.20 $7,706.40 $33,350.47 4.00% 4 $84,364.80 6.00% $5,061.89 $2,952.77 $8,014.66 $31,820.64 Match 5 $87,739.39 6.00% $5,264.36 $3,070.88 $8,335.24 $30,360.97 3.50% 6 $91,248.97 6.00% $5,474.94 $3,193.71 $8,668.65 $28,968.27 7 $94,898.93 6.00% $5,693.94 $3,321.46 $9,015.40 $27,639.45 8 $98,694.88 6.00% $5,921.69 $3,454.32 $9,376.01 $26,371.58 9 $102,642.68 6.00% $6,158.56 $3,592.49 $9,751.05 $25,161.88 10 $106,748.39 6.00% $6,404.90 $3,736.19 $10,141.10 $24,007.66 11 $111,018.32 6.00% $6,661.10 $3,885.64 $10,546.74 $22,906.39 12 $115,459.05 6.00% $6,927.54 $4,041.07 $10,968.61 $21,855.64 13 $120,077.42 6.00% $7,204.64 $4,202.71 $11,407.35 $20,853.09 14 $124,880.51 6.00% $7,492.83 $4,370.82 $11,863.65 $19,896.53 15 $129,875.73 6.00% $7,792.54 $4,545.65 $12,338.19 $18,983.84 16 $135,070.76 6.00% $8,104.25 $4,727.48 $12,831.72 $18,113.02 17 $140,473.59 6.00% $8,428.42 $4,916.58 $13,344.99 $17,282.15 18 $146,092.54 6.00% $8,765.55 $5,113.24 $13,878.79 $16,489.39 19 $151,936.24 6.00% $9,116.17 $5,317.77 $14,433.94 $15,733.00 20 $158,013.69 6.00% $9,480.82 $5,530.48 $15,011.30 $15,011.30 Investment Rate 9.00% Lump Sum $486,393.49 Disoubt Rate 6.00% Retirement Years 25 Potential Annual Payments $38,048.97
Example Salary Assumption Contribution % Contribution Match Total FV Defined Contribution 1 $75,000.00 6.00% $4,500.00 $2,625.00 $7,125.00 $36,634.34 2 $78,000.00 6.00% $4,680.00 $2,730.00 $7,410.00 $34,953.86 Salary Growth 3 $81,120.00 6.00% $4,867.20 $2,839.20 $7,706.40 $33,350.47 4.00% 4 $84,364.80 6.00% $5,061.89 $2,952.77 $8,014.66 $31,820.64 Match 5 $87,739.39 6.00% $5,264.36 $3,070.88 $8,335.24 $30,360.97 3.50% 6 $91,248.97 6.00% $5,474.94 $3,193.71 $8,668.65 $28,968.27 7 $94,898.93 6.00% $5,693.94 $3,321.46 $9,015.40 $27,639.45 8 $98,694.88 6.00% $5,921.69 $3,454.32 $9,376.01 $26,371.58 9 $102,642.68 6.00% $6,158.56 $3,592.49 $9,751.05 $25,161.88 10 $106,748.39 6.00% $6,404.90 $3,736.19 $10,141.10 $24,007.66 11 $111,018.32 6.00% $6,661.10 $3,885.64 $10,546.74 $22,906.39 12 $115,459.05 6.00% $6,927.54 $4,041.07 $10,968.61 $21,855.64 13 $120,077.42 6.00% $7,204.64 $4,202.71 $11,407.35 $20,853.09 14 $124,880.51 6.00% $7,492.83 $4,370.82 $11,863.65 $19,896.53 15 $129,875.73 6.00% $7,792.54 $4,545.65 $12,338.19 $18,983.84 16 $135,070.76 6.00% $8,104.25 $4,727.48 $12,831.72 $18,113.02 17 $140,473.59 6.00% $8,428.42 $4,916.58 $13,344.99 $17,282.15 18 $146,092.54 6.00% $8,765.55 $5,113.24 $13,878.79 $16,489.39 19 $151,936.24 6.00% $9,116.17 $5,317.77 $14,433.94 $15,733.00 20 $158,013.69 6.00% $9,480.82 $5,530.48 $15,011.30 $15,011.30 Investment Rate 9.00% Lump Sum $486,393.49 Disoubt Rate 6.00% Retirement Years 25 Potential Annual Payments $38,048.97
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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please explain me how to the green boxes now filled, show the formulas and compuations step by step
Transcribed Image Text:Example
Salary Assumption Contribution % Contribution
Match
Total
FV
Defined Contribution
1
$75,000.00
6.00%
$4,500.00
$2,625.00
$7,125.00
$36,634.34
2
$78,000.00
6.00%
$4,680.00
$2,730.00
$7,410.00
$34,953.86
Salary Growth
3
$81,120.00
6.00%
$4,867.20
$2,839.20
$7,706.40
$33,350.47
4.00%
4
$84,364.80
6.00%
$5,061.89
$2,952.77
$8,014.66
$31,820.64
Match
5
$87,739.39
6.00%
$5,264.36
$3,070.88
$8,335.24
$30,360.97
3.50%
6
$91,248.97
6.00%
$5,474.94
$3,193.71
$8,668.65
$28,968.27
7
$94,898.93
6.00%
$5,693.94
$3,321.46
$9,015.40
$27,639.45
8
$98,694.88
6.00%
$5,921.69
$3,454.32
$9,376.01
$26,371.58
9
$102,642.68
6.00%
$6,158.56
$3,592.49
$9,751.05
$25,161.88
10
$106,748.39
6.00%
$6,404.90
$3,736.19
$10,141.10
$24,007.66
11
$111,018.32
6.00%
$6,661.10
$3,885.64
$10,546.74
$22,906.39
12
$115,459.05
6.00%
$6,927.54
$4,041.07
$10,968.61
$21,855.64
13
$120,077.42
6.00%
$7,204.64
$4,202.71
$11,407.35
$20,853.09
14
$124,880.51
6.00%
$7,492.83
$4,370.82
$11,863.65
$19,896.53
15
$129,875.73
6.00%
$7,792.54
$4,545.65
$12,338.19
$18,983.84
16
$135,070.76
6.00%
$8,104.25
$4,727.48
$12,831.72
$18,113.02
17
$140,473.59
6.00%
$8,428.42
$4,916.58
$13,344.99
$17,282.15
18
$146,092.54
6.00%
$8,765.55
$5,113.24
$13,878.79
$16,489.39
19
$151,936.24
6.00%
$9,116.17
$5,317.77
$14,433.94
$15,733.00
20
$158,013.69
6.00%
$9,480.82
$5,530.48
$15,011.30
$15,011.30
Investment Rate
9.00%
Lump Sum
$486,393.49
Disoubt Rate
6.00%
Retirement Years
25
Potential Annual Payments
$38,048.97
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