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23 August, 15:49

Your employer contributes $50 a week to your retirement plan. Assume that you work for your employer for another 20 years and that the applicable discount rate is 9 percent. Given these assumptions, what is this employee benefit worth to you today?

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  1. 23 August, 19:47
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    Present value of contributions is $24,106.15

    Step-by-step explanation:

    Weekly rate=9%/52weeks = 0.173%

    Weekly contributions $50

    Number of weeks=20years*52weeks=1040

    Present value of contribution=$50 (1-[ (1+9%/52) ^-1040 / (9%/52)

    Present value of contribution = $24,106.15
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