Calculate equal annual retirement payment

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Reference no: EM131847986

You enroll in a thrift plan in which you are allowed to contribute 8% of your pretax salary per year. Your employer will contribute an additional 4%. Your starting annual salary is $73,000 and you can expect annual salary increases of 2.75%. Use an interest rate of 7.25% in all your calculations. All thrift plan deposits are annual end of year deposits. After 15 years at this employer, you change jobs, accepting employment at a company that doesn't have a thrift plan. After 10 years you succed in havin this company start a thrift plan which is identical to that of your first employer.

Calculate the equal annual retirement payment for a 20 year retirement after completing a 46 year employment.

Reference no: EM131847986

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