Solution to Case 7

Ans-1

|He is now 27 year. He graduate at 22 and started his career as a middle-level manager |  |  |

|His current annual salary |$70,000 | | |

|5-year ago his starting salary |$54,846.83 | | |

|increase per year | |5% | | |

|voluntary contribution to retirement (maximum up to $12,000) |11% | | |

|Saving one year later (11%) |$6,033.15 | |7% |

|  | |  | | |

Ans-2

|  |Beg Year |Employ contribution |Total contribution |  |Future Value |FV at 12% |

|Years |Salary |End Year |Employ plus company |at 7% Interest |

|1 |54846.8 |6033.2 |12066.3 |4.0 |15816.5 |18986.56132 |

|2 |57589.2 |6334.8 |12669.6 |3.0 |15520.8 |17799.90123 |

|3 |60468.6 |6651.5 |13303.1 |2.0 |15230.7 |16687.40741 |

|4 |63492.1 |6984.1 |13968.3 |1.0 |14946.0 |15644.44444 |

|5 |66666.7 |7333.3 |14666.7...