QuestionBackground information: For Question 2 and 3 Two employees A and Bjust attaining ages 25 start to work. Their current salaries are $20,000 at their attained age. Suppose that both employee have a salary increment of 4% per year. Suppose both employee continuously work with their employer until attaining age 65.Question 2 Employees A contribute 5% of the salary into a mandatory pension fund. The employer also contribute 5% of their salary into the mandatory pension fund. The mandatory pension fund have the rate of return of 8% per year. What is the accumulated amount of their mandatory fund when the employee A attains the age of 65.Question 3 Employees B contribute X% of their salary into a mandatory pension fund. Their employer also contribute X% of their salary into the mandatory pension fund. Also, Employee B voluntarily contribution 5% of his/her salary into the mandatory fund. The mandatory pension fund have the rate of return of 8% per year. The accumulated value of the pension fund can be converted to a perpetuity (payments are made at the end of each month). The rate of return of the perpetuity is 5% per year. What is the percent of contribution to salary (X%) such that the payment of the perpetuity is 60% of the final salary of employee B?MathStatistics and Probability
