Your employer contributes $75 a week to your retirement plan. Assume that you work for your employer for another 20 years and that the applicable discount rate is 7.5 percent. Given these assumptions, what is this employee benefit worth to you today

This employee benefit is worth $40,384.69 today.

Explanation:

a) Data and Calculations:

Employer contributions per week = $75

Period of work for the employer = 20 years (20 * 52 = 1,040)

Applicable discount rate is 7.5%

PV = $40,384.69

Sum of all periodic contributions = $78,000.00 ($75*20*52)

Total Interest= $37,615.31

b) The worth of the employee benefit equals the present value of all the contributions by the employer and the accompanying interest, compounded weekly at 7.5% per annum for a period of 20 years.

the toy store

explanation:

cuz he cant afford a real one

c is the correct answer.