Haley has an annual salary of $1,000,000 in 2019, 2020, and 2021. She is thinking about retiring at the beginning of 2022 after working for XYZ Corp. and participating in XYZ Corp.’s defined benefit plan. If  XYZ Corp.’s defined benefit plan pays employees 3 percent for every year of service for the average of their three highest years of compensation, what is the minimum number of years of service that would maximize Haley’s benefit if she were to retire at the beginning of 2022? Assuming she worked the minimum number of years to receive the maximum benefit, what would her annual defined benefit plan payment be in retirement?

Jerome and Laurie are signing the real estate papers tomorrow on the purchase of their first home. They both have Registered Retirement Saving Plans (RRSPS) at CIBC and are looking to use the Home Buyer's Plan (HBP) to make their down payment. As of today, December 17, 2021, the market value of Jerome's RRSP is at $23,765 while Laurie's is at $35,521. What is the maximum amount they can currently withdraw from their respective RRSPS with CIBC for their total down payment on a house under the HBP? Home Buyer's Plan (HBP) Withdraw up to $35,000 per borrower and up to $70,000 per couple. 15 years to pay back the amount withdrawn A $35,000 В $58,765 $70,000 $50,000 E $59,286

Reese is comparing retirement plans with prospective employers. ABC, Inc., offering a salary of $58,000, will match 75 percent of his contributions up to 10 percent of his salary, his maximum contribution. XYZ company will match 100 percent of this contribution up to 6 percent of salary, but he can contribute up to 15 percent of his income. XYZ Company is offering a $54,000 salary. If Reese assumes that he will contribute the maximum amount allowed and keep these first-year retirement funds invested for 30 years with a 9 percent return, how much would each account be worth? ABC Total Contribution Choose... ABC Future Value of Contribution Choose... + XYZ Total Contribution XYZ Future Value of Contribution Choose... Choose... #

After numerous years as a senior executive in the professional wrestling business, aunt Edna is planning to retire on December 31, 2020. Her company has offered her two retirement choices. The first is a twenty end-of-the year payments of $122,000 each starting on December 31, 2021 and the second is a lump sum of $2.25 million payable on January 1, 2020. Which one should she pick if her opportunity cost of the money is 6.60%? Show all your work.

You have been hired as a benefit consultant by Jean Honore, the owner of Sweet Angels. She wants to establish a retirement plan for herself and her three employees. Jean has provided the following information. The retirement plan is to be based upon annual salary for the last year before retirement and is to provide 50% of Jean's last-year annual salary and 40% of the last-year annual salary for each employee. The plan will make annual payments at the beginning of each year for 20 years from the date of retirement. Jean wishes to fund the plan by making 15 annual deposits beginning January 1, 2025. Invested funds will earn 11% compounded annually. Information about plan participants as of January 1, 2025, is as follows. Jean Honore, owner: Current annual salary of $49,990; estimated retirement date January 1, 2050. Colin Davis, flower arranger: Current annual salary of $37.190; estimated retirement date January 1, 2055. Anita Baker, sales clerk: Current annual salary of $20,900;…

Matthew is considering several possible compensation alternatives for services he has provided as a consultant:     Option A:  Matthew could receive $8,000 today. Option B:  Matthew could receive $2,500 at the end of each of the next four years. Option C:  Matthew could receive $12,000 five years from now.    Required:    Calculate the present value for each option assuming that Matthew can earn 7 percent on any investment funds. Which option results in the greatest financial benefit to Matthew? If Matthew earns 10 percent, will that change your answer to # 2 above?  Please explain.

Steve retired at the beginning of 2020. He worked for a company with a defined benefit plan. The plan provides for retirement benefits at a rate of 3% of the last three years' average compensation for every year of service. Steve had worked for this company for 30 years when he retired. His average salary for the last three years was $700,000. The maximum benefit Steve can receive from his retirement plan in 2020 is $ _____. (Enter your answer as a number.)

You have been hired as a benefit consultant by Jean Honore, the owner of Pina Angels. She wants to establish a retirement plan for herself and her three employees. Jean has provided the following information. The retirement plan is to be based upon annual salary for the last year before retirement and is to provide 50% of Jean's last-year annual salary and 40% of the last-year annual salary for each employee. The plan will make annual payments at the beginning of each year for 20 years from the date of retirement. Jean wishes to fund the plan by making 15 annual deposits beginning January 1, 2025. Invested funds will earn 11% compounded annually. Information about plan participants as of January 1, 2025, is as follows. Jean Honore, owner: Current annual salary of $51,900; estimated retirement date January 1, 2050. Colin Davis, flower arranger: Current annual salary of $37,230; estimated retirement date January 1, 2055. Anita Baker, sales clerk: Current annual salary of $19,700;…

Christina is deciding whether or not to enroll in a one-year academic program at the start of 2023 before she starts work at the start of 2024. The one-year program will cost $20,460 at the START of 2023. Supposing that Christina enrolls in the academic program, it will provide her with an additional end of the year income. Specifically, this additional income will be a $6,000 payment made to Christina at the END of 2024, 2025, 2026, 2027, 2028, and 2029. Calculate the internal rate of return based on the idea that it is the start of 2023 right now.

Julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $138,000 immediately as her full retirement benefit. Under the second option, she would receive $25,000 each year for 6 years plus a lump-sum payment of $57,000 at the end of the 6-year period.   Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.   Required: 1-a. Calculate the present value for the following assuming that the money can be invested at 12%. 1-b. If she can invest money at 12%, which option would you recommend that she accept?