### 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.

- What monthly amount of money today would provide you a comfortable living?
- 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. - 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? - 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? - Offer some alternatives to a sinking fund.
- 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.