# Individual Research Projects Section 11.5

### Project 11.8

Outline a program for your own retirement. In the process of writing this paper answer the following questions. You will need to state your assumptions about interest and inflation rates.

1. What monthly amount of money today would provide you a comfortable living?
2. Using the answer to part a project that amount to your retirement, calculating the
effects of inflation. Use your own age and assume that you will retire at age 65.
3. How much money would you need to have accumulated to provide the amount you
found in part b if you decide to live on the interest only?
4. If you set up a sinking fund to provide the amount you found in part c, how much
would you need to deposit each month?
5. Offer some alternatives to a sinking fund.
6. Draw some conclusions about your retirement. There are a multitude of sites to help with retirement planning. Here is a sample:
http://www.troweprice.com/common/index3/0,3011,lnp%253D10106%2526cg%253D920%2526pgid%253D7592,00.html?van=retirement

### Project 11.9

Suppose you were hired for a job paying \$21,000 per year and were given the following options:

Option A: Annual salary increase of \$1,200.
Option B: Semiannual salary increase of \$300.
Option C: Quarterly salary increase of \$75.
Option D: Monthly salary increase of \$10.
Write the arithmetic series for the total amount of money earned in 10 years under a different option. Which is the best option? Give reasons and show your calculations in the paper that you submit.