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Real-Life Activities

Real-Life Math -- Solution

To find her salary at age 65, you need to use the formula:

Future salary = p x (1 + r)n

Future salary = $30,000 x (1 + 0.04)19

Future salary = $63,205.47

Pension = 70 percent of $63,205.47

Your company will have to plan on paying out $44,243.83 per year for this customer's pension.

"You're working with large sums of money and this money has to be guaranteed," says actuary Wally Robinson.

A person's future depends on it -- your job depends on it.