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Data for Question 15 At the end of each year, Smith's employer makes a contribution to a fund on his behalf. 4.00% of salary Annual contribution: Salary increase: 3.00% per year, compounded annually 6.75% per year, compounded annually $60,000 Investment return: Smith's salary for the first year: X-the balance in the fund for Smith at the end of 20 years. Question 15 In what range is X? (A) Less than $113,000 (B) $113,000 but less than $121,000 (C) $121,000 but less than $129,000 (D) $129,000 but less than $137,000 $137,000 or more

Data for Question 15 At the end of each year, Smith's employer makes a contribution to a fund on his behalf. 4.00% of salary Annual contribution: Salary increase: 3.00% per year, compounded annually 6.75% per year, compounded annually $60,000 Investment return: Smith's salary for the first year: X-the balance in the fund for Smith at the end of 20 years. Question 15 In what range is X? (A) Less than $113,000 (B) $113,000 but less than $121,000 (C) $121,000 but less than $129,000 (D) $129,000 but less than $137,000 $137,000 or more

Essentials Of Investments
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
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Data for Question 15 At the end of each year, Smith's employer makes a contribution to a fund on his behalf. 4.00% of salary Annual contribution: Salary increase: Investment return: 3.00% per year, compounded annually 6.75% per year, compounded annually $60,000 Smith's salary for the first year: X-the balance in the fund for Smith at the end of 20 years. Question 15 In what range is X? (A) (B) (C) (D) (E) Less than $113,000 $113,000 but less than $121,000 $121,000 but less than $129,000 $129,000 but less than $137,000 $137,000 or more
Transcribed Image Text:Data for Question 15 At the end of each year, Smith's employer makes a contribution to a fund on his behalf. 4.00% of salary Annual contribution: Salary increase: Investment return: 3.00% per year, compounded annually 6.75% per year, compounded annually $60,000 Smith's salary for the first year: X-the balance in the fund for Smith at the end of 20 years. Question 15 In what range is X? (A) (B) (C) (D) (E) Less than $113,000 $113,000 but less than $121,000 $121,000 but less than $129,000 $129,000 but less than $137,000 $137,000 or more
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