Carol has joined an employees’ savings plan. She has $200 withheld monthly from her paycheck and placed in her account in the company credit union. To encourage employees to save, the company contributes an additional 10%to these savings accounts, with the company’s contribution not to exceed $50 per month per employee. The company’s contributions however, do not become available to the employee unless the account is maintained for at least 5 years. If the credit union guarantees an interest rate of 8% compounded monthly, how much will Carol have in her account after 3 years ? After 10 years ?
Carol has joined an employees’ savings plan. She has $200 withheld monthly from her paycheck and placed in her account in the company credit union.
To encourage employees to save, the company contributes an additional 10%to these savings accounts, with the company’s contribution not to exceed $50 per month per employee. The company’s contributions however, do not become available to the employee unless the account is maintained for at least 5 years. If the credit union guarantees an interest rate of 8% compounded monthly, how much will Carol have in her account after 3 years ? After 10 years ?
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