Employee Success In The Energy Success

Assignment 3: HOW MUCH DID I MAKE AND SAVE?
This exercise is very close to reality for process technicians in the industry. Many process technicians retire as a millionaire if they are careful with their money.
Instructions: Read the information below and use that information to answer the questions for this homework assignment. Show all your calculations. Answers without accompanying math will be counted wrong.
You are 25 years old and have been hired by Shell Oil as an operator or instrument technician. You will work for Shell until you are 66 and then can draw social security and Medicare. Your average wage working all these years for Shell is $56.00 an hour which amounts to $8960 a month.
Shell has a 401K savings plan which you joined and opted to put $300 a month in the 401K. Shell will match that amount each month.
You join a credit union and create an emergency savings account and put $200 a month into the account until you retire.
On average until you retired you worked three 12-hour overtime shifts a month and are paid time-and-a-half, which is $84/hour.
1. What was the total income you earned from Shell, including overtime?

2. Assume you pay a federal income tax of 20%. How much money did you pay in taxes?

3. A. After paying your taxes, and subtracting the money you put in your 401K and your emergency saving account, how much money did you have to spend for everything else?

B. How much is that per month?

4. How much money did you have in your 401K when you retired?

5. How much money did you have in your emergency saving account when you retired? (Assuming you didn’t spend any of it?)