Use the Table Below to Answer the Following Question(s) -What Will Be Sheila's Salary in Her Second Year of Joined
Use the table below to answer the following question(s) .
Sheila joined Simsin Tradings at the age of 36 with a starting salary of $75,000. She expects a salary increase of 5 percent every year. Her retirement plan requires her to pay 9 percent of her salary, while the company matches it at 32 percent. She expects an annual return of 7 percent on her retirement portfolio. Using a predictive model for Sheila's first five years, calculate the following, assuming that the salary increases at the same rate every year, and the return of interest does not change.
-What will be Sheila's salary in her second year of work at Simsin?
A) $81,750
B) $82,688
C) $78,750
D) $ 75,000
Correct Answer:
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