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2 years ago

Case Study 2: Maxing out Matched Savings

Mathematics

1 answer:

zhuklara [117]2 years ago

4 0

Answer:

The computation of the given question is shown below:-

Total Contributions = Monthly contribution + Amount invested in Ferdinand’s 401(k)

= $250 + $125

= $375

1. Future Value = PMT [((1 + r)n - 1) ÷ r

Future value = 375 × ((1 + 0.03 ÷ 12) × 12 × 40 - 1) ÷ (0.03 ÷ 12)

= $347,272

2. Ferdinand deposit = Given Amount × Total number of months in a year × Number of years

= $250 × 12 Months × 40 Years

= $120,000

3. The Amount put in by the employer = 50% of $250 ×Total number of months in a year × Number of years

= $125 × 12 Months × 40 Years

= $60,000

4. Interest = Future value - Ferdinand deposit - The Amount put in by the employer

= $347,272 - $120,000 - $60,000

= $167,272

Step-by-step explanation:

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Hi!

This question is about math.

$\frac{1}{4}+\frac{5}{8}$

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Factors of 8: 1, 2, 4, 8 (prime factorization) (2*2*2)

Least Common Factor of a,b is the smallest positive number that divisible by both a and b.

Multiply each factor the greatest number of times it occurs in either 4 or 8.

Then multiply by the numbers.

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Multiply each numerator by the same amount needed to multiply its corresponding denominator to turn it into the Least Common Factor of 8.

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Since the denominator are equal, combine the fractions.

$\frac{2+5}{8}$

Add the numbers 2+5=7

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