Mathematics Problem using Data analysis.

JCB_india

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May 29, 2019
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Matthew has a new job as business analyst. He plans to invest 10 percent of his annual
salary after the tax into a retirement account at the end of every year for the next 30
years. Suppose that annual return is 5%, and his current salary before tax is 80k which
grow 3% per year. The tax will apply as 15% on the salary up to 50k and it is 20% for the
salary interval of 50k and 80k and the tax rate will be 25% for the remaining salary more
than 80k (for example if his salary will be 105k, he is paying 15% tax on his first 50k and
20% in the next 30 k and 25% on his next 25k of his salary). then:
a) Create a spreadsheet which shows Matthew the balance of retirement account for
various levels of annual investments and returns. (3 marks)
b) If Matthew aims to gain $1,500,000 at the end of the 30 th year, what percentage of
his salary he should put in the investment annually.
 

Subhotosh Khan

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Joined
Jun 18, 2007
Messages
18,354
Matthew has a new job as business analyst. He plans to invest 10 percent of his annual
salary after the tax into a retirement account at the end of every year for the next 30
years. Suppose that annual return is 5%, and his current salary before tax is 80k which
grow 3% per year. The tax will apply as 15% on the salary up to 50k and it is 20% for the
salary interval of 50k and 80k and the tax rate will be 25% for the remaining salary more
than 80k (for example if his salary will be 105k, he is paying 15% tax on his first 50k and
20% in the next 30 k and 25% on his next 25k of his salary). then:
a) Create a spreadsheet which shows Matthew the balance of retirement account for
various levels of annual investments and returns. (3 marks)
b) If Matthew aims to gain $1,500,000 at the end of the 30 th year, what percentage of
his salary he should put in the investment annually.
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