Michelle just graduated from Concordia and started her new job working as a Software Developer for Amazon as a remote employee from Montreal. One of thebenefits offered is to participate in the company's retirement plan. Even though Michelle is a long way off of retirement, she knows that this is an awesome benefitas Amazon matches her contributions dollar for dollar. The plan averages a return of 8% compounded weekly. Michelle is 23 years old and plans to work until age60. If she contributes $250 at the beginning of each month, with her employer doing the same, how much will she have in her retirement plan at retirement?A$1,355,876B$1,365,554$1,374,681$1,370,436$1,361,560

Future Worth: It is the future value of the current sum of money or current annuity cash flows.…

Answered: she contributes $250 at the beginning…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 43P

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Similar questions

Michiko and Saul are planning to attend the same university next year. The university estimates tuition, books, fees, and living costs to be 12,000 per year. Michikos father has agreed to give her the 12,000 she needs to attend the university. Saul has obtained a job at the university that will pay him 14,000 per year. After discussing their respective arrangements, Michiko figures that Saul will be better off than she will. What, if anything, is wrong with Michikos thinking?
Molly Lincoln, a 25-year-old personal loan officer at First National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $3,500 per year for her retirement fund and assumes that she'll retire at age 65. How much will Molly have accumulated when she turns 65 if she invests in equities and earns 8 percent on average? Round your answer to the nearest dollar. Molly is urging her friend, Isaac Stein, to start his plan right away, too, because he's 45. What would his nest egg amount to if he invested in the same manner as Molly and he, too, retires at age 65? Round your answer to the nearest dollar. 2a. Nest egg at 4% 2b. Nest egg at 8%
Molly Lincoln, a 25-year-old personal loan officer at First National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $4,000 per year for her retirement fund and assumes that she'll retire at age 65. How much will Molly have accumulated when she turns 65 if she invests in equities and earns 10 percent on average? Round your answer to the nearest dollar. Molly is urging her friend, Isaac Stein, to start his plan right away, too, because he's 40. What would his nest egg amount to if he invested in the same manner as Molly and he, too, retires at age 65? Round your answer to the nearest dollar. 2A. Nest egg amount at 4% 2B. Nest egg amount at 10%

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