1 answer

Katy contributes 6% of her salary tp a pension plan at the end of each year....

Question:

Katy contributes 6% of her salary tp a pension plan at the end of each year. She strated this year with the salary of $70,000 per year. Assuming that her salary is increased by 3% and the interest rate of the pension plan is 7%. Calculate the amount of money in her account after 10 years.

a.33,266

b.48696

c.55,493

d. 95,787


Answers

Future value = [(70,000 x 0.06 x 1.07) + (70,000 x 1.03 x 0.06 x 1.078) + (70,000 x 1.032 x 0.06 x 1.077) + ... + (70,000 x 1Future value = (70,000 x 0.06)[(1.07%) + (1.03 x 1.078) + (1.032 x 1.07) + ... + (1.039)

Future value = 4, 200x [(1.07%) + (1.03 x 1.078) + (1.032 x 1.074) + ... + (1.039)

Formula for GP will be helpful here, which is:

Sum =ax (4=;)

Here,

a is first term.

r is common difference.

n is number of terms.

In the last step of equation,

a is 1.07^9.

r is (1.03/1.07)

n is 10.

Future value = 4, 200 Ox 14.079) (1 - (1:02) (1.07) x 1 1 - 1.03

Future value = 4,200 x [(1.07°) 8.474963352

Future value = 4, 200 x 15.58087445

Future value = 65, 439.67

The amount of money in account after 10 years is $65,439.67.

.

Similar Solved Questions

1 answer
If someone releases a celebrity's personal health information from a hospital stay, can he or she...
If someone releases a celebrity's personal health information from a hospital stay, can he or she be criminally charged?...
1 answer
How do you solve #\log _ { 5} ( x + 52) + \log _ { 5} x = \log _ { 5} 53#?
How do you solve #\log _ { 5} ( x + 52) + \log _ { 5} x = \log _ { 5} 53#?...
1 answer
Record Transactions related to accounts recievable additional homework and attendance poi... Required information Problem 5-3A Record...
Record Transactions related to accounts recievable additional homework and attendance poi... Required information Problem 5-3A Record transactions related to accounts receivable (LO5-3,5-4,5-5) The following information applies to the questions displayed below. The following events occur for The...
1 answer
On March 31, 2019, Home Decorating Pavilion received a bank statement showing a balance of $9,800....
On March 31, 2019, Home Decorating Pavilion received a bank statement showing a balance of $9,800. The balance in the firm's checkbook and Cash account on the same date was $10,370. The difference between the two balances is caused by the items listed below. a. A $2,925 deposit made on March 30 ...
1 answer
Please show all workin EXTRA CREDIT PROBLEM (10 Points). This is difficult, we recommend that you...
Please show all workin EXTRA CREDIT PROBLEM (10 Points). This is difficult, we recommend that you compete the test and check through before attempting this question. No partial credit will be given, only full points for mostly correct answers Is the following series convergent or divergent? 1 + 3 1 ...
1 answer
QUESTION 13 Wage rate (dollars per hour) 30+ 25+ 1 2 3 4 5 Labor (thousands...
QUESTION 13 Wage rate (dollars per hour) 30+ 25+ 1 2 3 4 5 Labor (thousands of hours per day) The figure above shows the demand and supply curves for high skilled (indicated by an "subscript) and kiw skilled indicated by an subscript workers In the figure above, the equilibrium wage differential...
1 answer
Required information [The following information applies to the questions displayed below.] On September 1, Pat Hopkins...
Required information [The following information applies to the questions displayed below.] On September 1, Pat Hopkins established Ona Cloud Corporation (OCC) as a provider of cloud computing services. Pat contributed $12,000 for 1,200 shares of OCC. On September 8, OCC borrowed $24,500 from a bank,...
1 answer
At June 30, 2017, the end of its most recent fiscal year, Green River Computer Consultants’...
At June 30, 2017, the end of its most recent fiscal year, Green River Computer Consultants’ post-closing trial balance was as follows: Debit Credit Cash $5,230 Accounts receivable 1,200 Supplies 690 Accounts payable $400 Unearned service revenue 1,120 ...
1 answer
Use the following information to answer the requirements below: Number of units sold Selling price per...
Use the following information to answer the requirements below: Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inv...
1 answer
Suppose that your friend Ayesha wants to share a secret number with you via the DiffieHellmann...
Suppose that your friend Ayesha wants to share a secret number with you via the DiffieHellmann key exchange. Ayesha selected the prime number p = 23 and the primitive root g = 10. (For this problem, you do not have to verify that 10 is a primitive root mod 23.) (a) You have selected your private num...
1 answer
A compound is found to contain 31.42 % sulfur, 31.35 % oxygen, and 37.23% fluorine by...
A compound is found to contain 31.42 % sulfur, 31.35 % oxygen, and 37.23% fluorine by weight. To answer the questions, enter the elements in the order presented above. 1. What is the empirical formula for this compound? 2. The molecular weight for this compound is 102.1 g/mol. What is the molecular ...
1 answer
Question 7 (2 points) ___________networks are those in which all components are connected to all other...
Question 7 (2 points) ___________networks are those in which all components are connected to all other components. Question 7 options: A) Completely connected B) Ring C) Star D) Mesh Question 8 (2 points) Superpipelining occurs when a pipeline has stages that require less than two clock cycles to ex...
1 answer
What might each pair be thinking and what is reasonable about each pair's thinking? During a unit on similarity, you give students the following task Suppose we apply a dilation by a scale fac...
What might each pair be thinking and what is reasonable about each pair's thinking? During a unit on similarity, you give students the following task Suppose we apply a dilation by a scale factor centered at point P to the figure below. This process dilates the line. Find the images of A, B, and...
1 answer
Ssignment 04 - Analysis of Financial Statements 2. Liquidity ratios Аа д Most firms borrow money...
ssignment 04 - Analysis of Financial Statements 2. Liquidity ratios Аа д Most firms borrow money to finance some of their assets, and most will choose to borrow some long-term funds and some short- funds. Which group of lenders would put greater emphasis on a firm's liquidity r...