How much will employer need to contribute to pension plan

Assignment Help Management Theories

Reference no: EM131457365

Question: Suppose an employer wishes to provide an employee with $1,000 to pay for medical benefits when the employee retires in 25 years through a sweetened pension plan payment. The retiree's expected tax rate in retirement is 20%, the employer's current tax rate is 35%, and the pension fund earns 12% per year on its investments. How much will the employer need to contribute to the pension plan today to provide the $1,000 after tax to the retiree in 25 years?

Reference no: EM131457365

Questions Cloud

Use of dhcp a disadvantage in a network : 1. In what way does the use of ACLs help enforce the CIA triad in security? 2. In what way is the use of DHCP a disadvantage in a network?

Write report called for in the mountainside industries case : You are a professional business consultant. Write the report called for in the Mountainside Industries case presented on the next page. As your final assignment

Provide a transcript of this brief initial session : The patient for whom you wrote your transcript in the Week One Initial Call discussion has come to your office for a 15-minute initial assessment.

Choosing an algorithm based on optimization : What are the points you would consider while choosing an algorithm based on optimization?

How much will employer need to contribute to pension plan : Suppose an employer wishes to provide an employee with $1,000 to pay for medical benefits when the employee retires in 25 years through a sweetened pension plan

Elements of a data center environment : Write a 2-page memo that identifies and describes key elements of a data center environment and recommend the key elements.

What assumption a carry trader would expect profit : Based on what assumption a carry trader would expect profit? Is there risk in the carry trade? Among these currencies, why some are considered unconventional

Which alternative-the sweetened pension benefit : An employer wishes to provide health care benefits to its workers when they retire. The firm faces a current marginal tax rate of 35% and expects to face.

What do you think of the idea : What do you think of the idea that the most important question of all to ask is "What is the mission"?

User Account

All Pages