A) Bertha and Martha are twins, and just graduated from college. They plan to retire in 40 years. To that end, each has a 401-k tax-advantaged retirement account. Martha contributes $1,000 per month only for the first five years. Bertha does not contribute during the first 20 years but contributes $3,500 per month during the last 20 years. How much did Martha contribute to her account? $46.000 $52.000 $60.000 $50.400. B) How much did Bertha contribute to her account? $288.000 $800,000 $278.000 $840,000 C) How much would Martha's account hold at retirement if she earned an anbual rate of 11.5% monthly compounded? $1.347 2 18.85 31 940 849 36 34.425.537.6 D) How much would Bertha's account hold at retirement if she also earned an annual rate of 11.6% monthly compourdeef. 34. 347 9 18 25
A) Bertha and Martha are twins, and just graduated from college. They plan to retire in 40 years. To that end, each has a 401-k tax-advantaged retirement account. Martha contributes $1,000 per month only for the first five years. Bertha does not contribute during the first 20 years but contributes $3,500 per month during the last 20 years. How much did Martha contribute to her account? $46.000 $52.000 $60.000 $50.400. B) How much did Bertha contribute to her account? $288.000 $800,000 $278.000 $840,000 C) How much would Martha's account hold at retirement if she earned an anbual rate of 11.5% monthly compounded? $1.347 2 18.85 31 940 849 36 34.425.537.6 D) How much would Bertha's account hold at retirement if she also earned an annual rate of 11.6% monthly compourdeef. 34. 347 9 18 25
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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I need answers for Question a,b,c,d
Transcribed Image Text:A) Bertha and Martha are twins, and just graduated from college. They plan to retire in 40 years. To that
end, each has a 401-k tax-advantaged retirement account. Martha contributes $1,000 per month only for
the first five years. Bertha does not contribute during the first 20 years but contributes $3,500 per month
during the last 20 years. How much did Martha contribute to her account?
546.000
$52.000
$60.000
$50.400
B) How much did Bertha contribute to her account?
5288,000
$600,000
$278,000
$840,000
I..
C) How much would Martha's account hold at retirement if she earned an anhual rate of 11.5% monthly
compounded?
$1.347 9 18.85
31 940 849 38
5999 788 12
34.425.537.8
2
Di How muen would Bertha's account hold at redrement if she also earned an annual rate of 11.5%
monthly compoundeen
54.847918.26
$2.237 863.51
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