The Mathematics of Money

302 CHAPTER 6 SUMMARY Topic Key Ideas, Formulas, and Techniques Examples Calculating Dividends For Each Shareholder, p. 252 The ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Topic Key Ideas, Formulas, and Techniques Examples Yield to maturity, pp. 265– ...

304 Chapter 6 Investments Topic Key Ideas, Formulas, and Techniques Examples NAV of a Mutual Fund, p. 296 • The NAV is the total ...

Copyright © 2008, The McGraw-Hill Companies, Inc. 305 NOTES ...

306 Learning Objectives LO 1 Recognize the features and distinguish the key differences between defi ned benefi t and defi ned c ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Second, retirement planning is a business issue that goes well beyond preparin ...

308 Chapter 7 Retirement Plans (c) Following the formula, we fi nd the monthly benefi t would be 40($80)
$3,200 per month, exc ...

Copyright © 2008, The McGraw-Hill Companies, Inc. of time, the amount of the benefit offered with a two-life guarantee should be ...

310 Chapter 7 Retirement Plans schedule may allow for partial vesting that grows with years of service. With cliff vesting, it i ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Defined Benefit versus Defined Contribution Plans There are advantages and dis ...

312 Chapter 7 Retirement Plans Some workers prefer DC plans simply because they like the feeling of having control over their re ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Calculate the pension benefi t that would be paid for the following years of ...

How much would Rita be able to keep if she leaves her job with (a) 3 years, 5 months, (b) 5 years and 11 months, or (c) 11 years ...

Copyright © 2008, The McGraw-Hill Companies, Inc. 1.1 Simple Interest and the Time Value of Money 315 E. Additional Exercises B ...

316 Chapter 7 Retirement Plans value calculations we have done in prior chapters can be thought of as retirement account calcula ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Example 7.2.1 Sarah has $3,000 that she wants to invest in an IRA. She expects ...

318 Chapter 7 Retirement Plans though, that she should at least contribute the full 6% that her company will match, since the ma ...

Copyright © 2008, The McGraw-Hill Companies, Inc. (150%)(Nancy’s contribution)
$69.53 Nancy’s contribution
$46.35 Her biweek ...

income throughout your retirement, despite the fact that none of us know how long we have left on this earth. If you use this mo ...

B. 401(k) Plan Projections Assume that all employees in these examples are paid biweekly (26 times per year). LaNetta is 28 yea ...