Ashley joined simsin tradings at the age of 30 with a starting

Ashley joined Simsin Tradings at the age of 30 with a starting (annual) salary of $85,000. She expects a salary increase of 7 percent every year. In any given year, her retirement plan requires her to pay 5 percent of her salary into her retirement fund, while the company contributes 28 percent of the employee’s contribution in any given year. She expects an annual return of 4 percent on her retirement balance which is earned starting with her second year of employment. The return is only gained on the retirement balance that has accrued up until the end of the previous year not on any monies put into the retirement fund in the current year. By this logic, the retirement balance does not earn any return in her first year of employment. 

Part a) Begin by creating a spreadsheet model for the above problem. Clearly separate the Data from the Model. In the modeling section, let column A represent the time horizon. Also, arrange the other quantities in columns.

Part b) Now modify the model so that her salary increase is a normally distributed model with a mean of 7% and a standard deviation of 1.5% and the annual return on her portfolio is uniform between 2% and 8%. Highlight the cell that corresponds to her retirement balance when she is 50 years old.

Part c) Run a simulation of 200 trials and determine the probability that her retirement balance is greater than $450,000

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Open chat
Hello, welcome to our site. Kindly send us a message and we will be in contact with you right away. "We are simply the best"