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puteri [66]
4 years ago
10

You started your first job after graduating from college. Your company offers a retirement plan for which the companycontributes

25% of what you contribute each year. You expect to contribute $5,000 per year from your salary. You decideto invest the contributions in assets that you expect to earn 8% per year. If you plan to retire in 35 years, how big will youexpect that retirement account to be?A. $861,584.02B. $921,597.31C. $972,110.74D. $1,076,980.02
Business
1 answer:
Nesterboy [21]4 years ago
3 0

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Annual deposit= 5,000*1.25= $6,250

n= 35 years

i= 0.08 annual

To calculate the future value of the retirement plan, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {6,250*[(1.08^35)-1]}/0.08= }$1,076,980.02

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5 0
2 years ago
There are arguments for and against the alternative exchange rate regimes. a) List the advantages of the flexible exchange rate
atroni [7]

Answer:

a. The advantages of the flexible exchange rate system include: (I) provides insulation against unemployment problem in other countries and (ii) promotes economic development and helps to achieve full employment in the country, iii) automatically corrects the disequilibrium in the balance of payments.

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Explanation:

8 0
3 years ago
Which of the following is a common role of government in a” market economy? a. Provide public goods b. Own the factors of produc
lozanna [386]
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Hope this helps!
4 0
4 years ago
sarah Jones wants to deposit $2,000 per year into an account earning 4 percent for the next 3 years, so she can purchase a used
andre [41]

Answer:

Compounding formula would be used here which is as under:

Future Value = Present value * (1+r)^n

FV = (PV is $2000) *  ( 1 + 4%)^ 3 number of years

Remember that r is the return that is 4% that Sarah Jones will receive.

So

FV = $2250

So this is the amount that she will receive after three years. I would recommend her to invest in ordinary shares (take higher risk for higher return) so that she is able to buy a better car.

5 0
3 years ago
Roger always purchased insurance for the 10 years he owned an expensive speedboat. Since he never had an accident, the premiums
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6 0
3 years ago
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