Question: Your new job offers a savings plan that pays 1.00 percent in interest each month. You can't participate in the plan, however, until you have 6 years with the company. At that time you will start saving $800 a month for the next 20 years.
How much will you have in this savings account in 26 years? Round your answer to two decimals.
Another perk of your new job is that, after 6 more years with the company, you will get an increase of $50 in your monthly salary. Assume you would stay with the company for 20 more years after getting the salary increase, and that you discount at 1.00 percent each month.
What is this salary increase worth to you today? Round your answer to two decimal.