Use the Table Below to Answer the Following Question(s) -What Will Be the Amount of Employee Contribution to Retirement

Multiple Choice

Use the table below to answer the following question(s) .
Sheila joined Simsin Tradings at the age of 36 with a starting salary of $75,000. She expects a salary increase of 5 percent every year. Her retirement plan requires her to pay 9 percent of her salary, while the company matches it at 32 percent. She expects an annual return of 7 percent on her retirement portfolio. Using a predictive model for Sheila's first five years, calculate the following, assuming that the salary increases at the same rate every year, and the return of interest does not change. $\begin{array}{|l|l|}\hline \text { Retirement Plan Model for Sheila } & \\\hline & \\\hline \text { Data } & \\\hline & \\\hline \text { Retirement Contribution (percent of salary) } & 9 \text { percent } \\\hline \text { Employer Match } & 32 \text { percent } \\\hline \text { Annual Salary Increase } & 5 \text { percent } \\\hline \text { Annual Return on Investment } & 7 \text { percent } \\\hline\end{array}$
-What will be the amount of employee contribution to retirement plan when Sheila has reached the age of 38?

A) $7,441.88
B) $7,813.97
C) $24,450
D) $2381.40