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Suppose that you are a contact engineer. Every 5 years you get a 3 year contract worth $1,000,000. The remaining 2 years are spent attempting to get another high paying contract. Each contract is payed upfront, and you invest 20% if your income plus an additional 5% for each contact you have completed into a savings account that pays 1.89% effective per annum. Assume that you are 40 now, and that you will not work a day past 65. Suppose that you have 250,000 already in your savings. What is the present value of your retirement plan?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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