An employee has just joined SONY Corporation and a pension plan is set up in her name under which the company will contribute $5,000 per year and the employee herself will contribute $1,000 per year. How much will this year's contributed funds be worth in 10 years if the pension plan pledges a 7 percent annual return on each dollar saved? Suppose the employee plans to retire in 10 years. How much will be available in total at retirement if the company and employee contribute the amounts noted above each year for the next 10 years and this employee owns (is vested with) the full amount of savings contributed to the pension plan? If the pension promises an annual annuity rate of 6 percent given this employee's life expectancy, what annual retirement income can she expect?

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The Answer of An employee has just joined SONY Corporation and a pension plan is set up in her name under which the company will contribute $5,000 per year and the employee herself will contribute $1,000 per year. How much will this year's contributed funds be worth in 10 years if the pension plan pledges a 7 percent annual return on each dollar saved? Suppose the employee plans to retire in 10 years. How much will be available in total at retirement if the company and employee contribute the amounts noted above each year for the next 10 years and this employee owns (is vested with) the full amount of savings contributed to the pension plan? If the pension promises an annual annuity rate of 6 percent given this employee's life expectancy, what annual retirement income can she expect?

An Employee Has Just Joined SONY Corporation and a Pension