4. Suppose $100 is invested every month into a company savings plan and the company dollar-for-dollar contribution for this amount vests immediately. If the saving plan pays 4% compounded annually for two years and 6% compounded annually for three years, what is the value of the plan after 5 years?

Economics Today and Tomorrow, Student Edition
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ISBN:9780078747663
Author:McGraw-Hill
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Chapter6: Saving And Investing
Section6.1: Why Save?
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4. Suppose $100 is invested every month into a company savings plan and the
company dollar-for-dollar contribution for this amount vests immediately. If the savings
plan pays 4% compounded annually for two years and ô% compounded annually for
three years, what is the value of the plan after 5 years?
Transcribed Image Text:4. Suppose $100 is invested every month into a company savings plan and the company dollar-for-dollar contribution for this amount vests immediately. If the savings plan pays 4% compounded annually for two years and ô% compounded annually for three years, what is the value of the plan after 5 years?
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