# Note that the annual total government support could

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%25 support in entire accumulated amount at the end. Note that, the annual total government support could not be more than 7,500 TL. But, lkay will be able to get %60 percent of the government support if she quits the system at the end of year 10. Estimated annual returns on the pension deposits compounded monthly are given below to calculate the accumulated total amount in IPS. Year 1 2 3 4 5 6 7 8 9 10 Rate of Return (%) 11 10 8.5 9 10 9.8 10.2 12.3 12 11.8 Also, there will be an income tax of 10% for IPS returns to be calculated at the end of year 10 (see below **). In the lights of information supplied above, she wonders that: How
reasonable are her goals? What will be the accumulated amount for the investment plan at the end of 10-year period? Note that you are supposed to perform analyzing your alternatives with at least using present worth and rate of return methods on Microsoft Excel. Notes: Income tax for bank deposits is to be deductible at the end of each compounding period: After Tax Effective Interest Rate * Effective Interest Rate - Tax Rate %15) - Income tax in IPS is to be deductible at the end of 10 years period: ** Net Income After Tax = Total Amount of Money Accumulated in IPS Total Amount of - ( Money Accumulated in IPS Total Amount - of Deposits for ) * ( Tax Rate Toxo ). IPS

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