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puteri [66]
3 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]3 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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Answer:

a. gross income test

Explanation:

because quailfying children must pass the relationship, age support, residence tests.However,there is no requirement relating to gross income for purposes of the qualifying child test.

4 0
3 years ago
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givi [52]

Answer:

The correct option is false.

Explanation:

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7 0
3 years ago
A market for existing financial securities that are currently traded among investors is called the ________ market. super fundam
Nadya [2.5K]

A market for existing financial securities that are currently traded among investors is called the Secondary market.

A secondary market is a market for the purchase and sale of existing securities or other assets. They differ from primary markets, where the assets were created. Generally, most investors will only trade on secondary markets.

Transactions in the secondary market are undertaken with other investors rather than the security issuer. The procedure is comparable to buying products from the classifieds or a used car from a dealership rather than the manufacturer.

Stocks and bonds purchased in a retirement plan or through a brokerage account, for example, are traded on secondary markets.

Assume you have two portfolios: one through an employee stock ownership plan and the other through a discount brokerage. The main market transaction occurs when you purchase stock directly from the corporation, like in the first plan. It is a secondary market transaction when you buy in a discount brokerage account through stock exchanges.

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8 0
1 year ago
Assume that Kish Inc. hired you as a consultant to help estimate its cost of common equity. You have obtained the following data
Kobotan [32]

Answer:

Cost of equity= 10,50%

Explanation:

The cost of equity is the return a company requires to decide if an iThe cost of equity is the return a company requires to decide if an investment meets capital return requirements. A firm's cost of equity represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership.

Cost of equity= (D1/P0)+g

D1= next year dividend (D0*

P0=actual price

g= growth rate of dividends

In this exercise:

D1=D0*(1+g)=0,90*1,07=$0,963

P0=$27,50

g=0,07

Cost of equity= 0,963/27,5+0,07=0,1051=10,50%

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